Professional Documents
Culture Documents
202186138375411CustomsAct1969 (UPTOFINAL June2021)
202186138375411CustomsAct1969 (UPTOFINAL June2021)
Whereas it is expedient to consolidate and amend the law relating to the levy
and collection of customs-duties 1a[, fee and service charges] and to provide for other
allied matters:
It is hereby enacted as follows:-
CHAPTER 1
PRELIMINARY
1
THE CUSTOMS ACT,1969
9
[(bb) “assessment” includes provisional assessment, reassessment
and any order or assessment in which the duty assessed is nil;
10
[(bba) “audit” means examination of books, records, documents,
correspondence, stocks and inventory of goods relating to import,
export and other business activities of the persons referred to in
section 211, in order to ascertain their liability of duties and taxes
and compliance with relevant laws and rules;]
(bbb) “baggage” includes unaccompanied baggage but does not
include motor vehicles;]
11[
(c) omitted.
12
(d) omitted].
12a
(e) [“Board” means the Central Board of Revenue established
under the Central Board of Revenue Act, 1924 (IV of 1924), and
on the commencement of Federal Board of Revenue Act, 2007,
the Federal Board of Revenue established under section 3
thereof;]
13
[(ea) "carrier" means the person actually transporting goods or
incharge of, or responsible for, the operations of the means of
transport or the owner thereof;]
(f) “coastal goods” means the goods transported in a vessel from
one port in Pakistan to another, but does not include imported
goods on which customs duty has not been paid;
14
[(fa) “Collector” means Collector of Customs appointed under
section 3 and includes any other officers equivalent in rank with
any other designation appointed under this Act to perform
specified functions in own jurisdiction;]
15
[(ff) “Collector (Appeals)” means a person appointed to be a
Collector of Customs (Appeals) under section 3;]
42
[fff "controlled delivery” means supervised and coordinated
operational activities that allow suspected consignments of
prohibited and restricted goods, including items mentioned in
section 2(s), to pass out of, through or into the territory of
Pakistan, with a view to identifying persons involved in the
commission of an offence cognizable under this Act;]
(g) “conveyance” means any means of transport used for carrying
goods or passengers such as a vessel, aircraft, vehicle or animal;
(h) “customs-airport” means any airport declared under section 9
to be a customs- airport;
(i) “customs-area” means the limits of the customs-station
specified under section 10 and includes any area in which
imported goods or goods for export are ordinarily kept before
clearance by the customs authorities;
2
THE CUSTOMS ACT,1969
16
[(ia) "Customs Computerized System" means a comprehensive
Customs information technology system specified in Chapter
XVI-A;
17
[(ib) omitted].
44
[(ic) “Customs controls” means measures applied by the officers of
customs or through Customs Computerized System to manage
risks and ensure compliance.]
(j) “customs-port” means any place declared under section 9 to be
a 18[customs-port];
19
[(jj) omitted].
40(k) “customs-station” means any customs-station, customs-airport,
an inland river port, land customs-station or any place declared as
such under section 9];
20
[(kk) “detain”, in relation to goods, means to prohibit the disposal or
use of the goods, pending the finalization of any proceedings
under this Act in relation to the goods or the owner thereof;]
21
[(kka) “documents” means a goods declaration, application for claim
of refund, duty drawback or repayment of duty, import or export
general manifest, passenger manifest, 46[master bill of lading, bill
of lading, airway bill, certificate of origin] bill of lading, airway
bill, commercial invoice and packing list or similar other forms
or documents used for customs clearance or making a declaration
to Customs, whether or not signed or initialed or otherwise
authenticated, and also includes,-
(i) any form of writing on material, data or information
recorded, transmitted, or stored by means of a tape recorder,
computer or any other device, and material subsequently derived
from information so recorded, transmitted or stored;
(ii) a label, marking or other form of writing that identifies
anything of which it forms part or to which it is attached by any
means;
(iii) a book, map, plan, graph, or drawing; and
(iv) a photograph, film, negative, tape, or other device in
which one or more visual images are embodied so as to be
capable (with or without the aid of some other equipment) of
being reproduced.
(kkb) “electronic duty drawback filing and payment system” means
Electronic Duty Drawback Filing and Payment System as
specified by the rules;]
47
[(kkc) electronic assessment” means assessment of a goods declaration
in Customs Computerized System by an officer of Customs or by
the computerized system according to the selectivity criteria;]
3
THE CUSTOMS ACT,1969
22
[(kkk) “export manifest” means export manifest delivered under sub-
section (2) of section 53 and includes electronically filed export
manifest;]
(l) “goods” means all movable goods and includes-
(i) conveyance,
(ii) stores and materials,
(iii) baggage, and
(iv) currency and negotiable instruments;
23
[(la) “goods declaration” means a goods declaration filed under
sections 79, 10439[,121], 131, 139 42[,] 144 42[ or 147] and
includes a goods declaration electronically filed;]
(lb) “import manifest” means import manifest delivered under
section 43 or 44 as the case may be and includes electronically
filed import manifest;]
35[(Ic) “KIBOR” means Karachi Inter Bank Offered Rate prevalent on
the first day of each quarter of the financial year.]
47
(ld) [Vessel Intimation Report” or “VIR” means an intimation
regarding impending arrival of a vessel at a customs sea port,
where the customs computerized system is operational, to the
customs authorities in the form and manner, by the carrier or his
agent, as may be prescribed by rules;]
41(m) Omitted;
(n) “master” when used in relation to any vessel, means any
person, except a pilot or harbour master, having command or
charge of such vessel;
(o) “officer of customs” means an officer appointed under section 3;
(p) “Pakistan customs-waters” means the waters extending into
the sea to a distance of 43[twenty-four] nautical miles measured
from the appropriate base line on the coast of Pakistan;
24
[(pa) ”person” includes 43[a local manufacturer,] a company, an
association, a body of individuals whether incorporated or not;
(q) “person-in-charge” means –
4
THE CUSTOMS ACT,1969
25
[(qa) "principal" means the owner of the goods or the person
primarily responsible for making a declaration to Customs under
this Act and includes the person in-charge of the conveyance,
carrier, custodian of cargo, and the terminal operator;
44
[“(qb) “Risk Management System” means the systematic application
of Customs Controls and Management Procedures on pre-arrival,
Customs clearance processes and post clearance of goods and
passengers, for identifying, analyzing, evaluating, monitoring,
reviewing and treating the risk associated with them;
(qc) “Risk Management Committee” means a committee headed by
a BS-21 officer of Customs, constituted under the rules, to review
functioning and supervise implementation of the Risk
Management System and shall comprise as many BS-19 and BS-
20 officers of Customs as may be notified by the Board;]
5
THE CUSTOMS ACT,1969
LEGAL REFERENCE
1. For Statement of Objects and Reasons, see Gazette of Pakistan, 1969 Extraordinary
(Rawalpindi), Page626, and for the report of the Select Committee see ibid, 1969
Extraordinary(Dacca), Page 199.
1a The comma and words “,fee and service charges” inserted vide FA, 2007.
2. This Act has been extended to the Federally Administered Tribal Areas, (subject to the
modification that section 185 thereof shall have effect as if in sub-section (2), after the word
“he” words “is a Political Agent or” were inserted by the Regulation No.1 of 1984.s.2.
3. Substituted for the words “Central Government” by the Finance Ordinance,1972(XXI of 1972),
section 3, page 56 and Second Schedule S.1, page 76 with effect from 17 th June,1972.
4 .i.e. the 1st day of January,1970, vide Notification published in Gazette of Pakistan,
Extraordinary, January,1970 Extraordinary, Page,1035.
5 Substituted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 106.
6. Omitted vide Finance Ordinance, 2000(XXI of 2000), S.4(1)(a), page 198 and inserted by
Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(a), page 222.
6
THE CUSTOMS ACT,1969
7. Inserted by Finance Ordinance, 2002 (XXVII of 2002), S.4(1)(b), page 222.
8. Inserted by Finance Act, 1989(V of 1989), S.5(1)(b), page 106.
8a. Substituted by the FA, 2007. Before substitution definition was as under:-
“appropriate officer” in relation to any functions to be performed under this Act, means the
officer of customs to whom such functions have been assigned by or under this Act;
9. Inserted by Finance Act, 1989(V of 1989), S.5(1)(c), pages 106-107.
10. Inserted by Finance Act, 2006.
11. Omitted by Finance Act, 2006. At the time of omitting the clause (c) was as under:-
“(c)“bill of entry” means bill of entry delivered under section 79 11a[and includes electronic
filing of bill of entry];
11a Added by Finance Ordinance, 2001 (XXV of 2001) S.4(1), page 304.”
12. Omitted by Finance Act, 2006. At the time of omitting the clause (d) was as under:-
“(d)“bill of export” means bill of export delivered under section 131 **[and includes electronic
filing of bill of export];.**Added by Finance Ordinance, 2001 (XXV of 2001), S.4(1)(ii), page
305.
12a. Substituted by the FA, 2007. Before substitution definition was as under:-
“Board” means the Central Board of Revenue, constituted under the Central Board of Revenue
Act, 1924;”
13. Inserted by Finance Act, 2003 (I of 2003), S.5(1)(a), page 20.
14. Inserted by Finance Act, 2005
15. Inserted by Finance Act, 1989 (V of 1989), S.5(1)(a), page 107, Omitted by Finance Ordinance,
2000 (XI of 2000), S.4(1)(b), page 198 and inserted by Finance Ordinance 2002 (XXVII of
20020, S.4(1)(c). At the time of omission, clause (ff) was as under:-
“[(ff) ”Collector (Appeals)” means a person appointed to be a Collector of Customs
(Appeals) under section 3;]”
16. Inserted by the Finance Act, 1994 (XII of 1994), S.6(1), page 253 and substituted by Finance
Ordinance, 2001 (XXV of 2001), S.4(1)(iii), page 305, substituted by Finance Ordinance, 2002
(XXVII of 2002), S.4(1)(d), page 223 and substituted by Finance Act, 2003 (I of 2003), S.5(1)(b),
page 20. At the time of substitution clause (ia) was as under:-
“[(ia) “customs documents” includes bill of entry, bill of export, application for claim for
refund, duty drawback and repayment of duty, baggage declaration form or similar other forms
used for customs clearance and such documents electronically filed;]”.
“[(ia) “customs documents” include bill of entry, bill of export, application for claim for
refund, duty drawback and repayment of duty, baggage declaration form or similar other forms
used for customs clearance;]”.
17 Substituted for clause (ia) as clauses (ia) and (ib) by FA, 2003 and omitted by Finance Act,
2006. At the time of omitting the clause (ib) was as under:-
(ib) “customs documents” includes bill of entry, bill of export or goods declaration,
applications for claim for refund, duty drawback and repayment of duty, baggage declaration
form and documents such as bill of lading, commercial invoice and packing list or similar other
forms or documents used for customs clearance and includes such documents electronically filed
and system generated documents that are not required to be manually signed by the departmental
officials;
18. Substituted for the words “port for the shipment and landing of goods” by Finance Act, 1973 (L
of 1973), S.9(1)(a), page 530.
19. Inserted by the Finance Act, 1977 (XXX of 1977), S.9(1), page 301 and omitted by Finance Act,
2006. At the time of omitting the clause (jj) was as under:-
“[(jj) “customs-practitioner” means a person registered as a customs practitioner in
accordance with the rules made by the Central Board of Revenue in this behalf];
17a.
20. Inserted by the Finance Act, 1987 (VI of 1987), S.8(1)(a), page 33.
21. Inserted by the Finance Act, 2006.
22. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(iv), page 305.
23. Inserted by the Finance Ordinance, 2001 (XXV of 2001), S.4(1)(v), page 305 and substituted by
the Finance Act, 2003 and Finance Act, 2006. At the time of substitution was as under:-
23a. “(la) import manifest means import manifest delivered under section 43 or 44 as the
case may be and includes electronically filed import manifest;]”.
7
THE CUSTOMS ACT,1969
23b Substituted by the Finance Act, 2006. At the time of substitution the clause (la) was as
under:-
“23b[(la)"goods declaration" means a goods declaration filed under sections 79, 23c[or] 131
23d[***] and includes goods declaration filed electronically;
23c. Substituted for the commas, figure and letter“79A”by the Finance Act, 2005
23d. Omitted the word, figure and letter “or 131A” by the Finance Act, 2005
8
THE CUSTOMS ACT,1969
CHAPTER II
Directors, Deputy Directors, Assistant Directors and such other officers as the Board
may, by notification in the official Gazette, appoint.]
Provided that, notwithstanding anything contained in this Act or the rules, the
Board may, by general or special order, impose such limitations or conditions on the
exercise of such powers and discharge of such duties as it thinks fit.
4
[5 “Delegation of powers.- 5(1)] The Board may, by notification in the official
Gazette and subject to such limitations or conditions as may be specified therein,
empower by name or designation-
7
[6.Entrustment of functions of customs officers to certain other officers.- 8(1)
The Board may, by notification in the official Gazette, entrust, either
conditionally or unconditionally, any functions of any officer of customs under this Act
to any officer of the Federal Government, Provincial Government, State Bank of
Pakistan and Scheduled Banks 19[in accordance with the legal framework notified by
the Board]:
11
THE CUSTOMS ACT,1969
Provided that where any officer in performance of his functions under this
section commits any offence under this Act, such officer shall, in addition to any other
penalty which may be imposed under any other law for the time being in force, be liable
to such punishment as is specified in sub-section (1) of section 156 for the offence
committed by him.]
9
[(2) No officer entrusted with any functions of any officer of customs under
sub-section (1) shall interfere in any manner in the performance or discharge of any
duty by an officer of customs in places notified under section 9.]
16
[7. Assistance to the officers of customs.- All officers of Federal and Provincial
Governments, including Inland Revenue, Police, National Highways and Pakistan
Motorway Police, Civil Armed Forces,20[Border Military Police (BMP)] and officers
engaged in the collection of land-revenue are hereby empowered and required to assist
the officers of customs in the discharge of their functions under this Act. 19[The
provision of assistance so requested shall be binding.]
LEGAL REFERENCE
1. Substituted by the Finance Act, 1996 (IX of 1996), S.4(1), page 469. Section 3 at the time of
substitution was as under:-
“3. Appointment of officers of Customs.- For the purposes of this Act, the Board may, by
notification in the official Gazette, appoint, in relation to any area specified in the
notification, any person to be-
(a) a Collector of Customs;
**[(aa) a Collector of Customs (Appeals);]
(b) a Deputy Collector of Customs;
(c) an Assistant Collector of Customs; or
(d) an officer of customs with any other designation.”
**. Inserted by the Finance Act, 1989 (V of 1989), S.5(2)(a), page 107.
1a. Substituted by the FA, 2007, Before substitution sections 3A and 3B was as under:-
“1b[3A. The Directorate General (Intelligence and Investigation), Customs and Federal.-
The Directorate General (Intelligence and Investigation), Customs and Federal Excise, shall
consist of a Director General and as many Directors, Additional Directors, Deputy Directors and
Assistant Directors and such other officers as the Board may, by notification in the official
Gazette, appoint.
3B. Directorate General of Inspection and Internal Audit.- The Directorate General of
Inspection and Internal Audit shall consist of a Director General and as many Directors,
12
THE CUSTOMS ACT,1969
Additional Directors, Deputy Directors and Assistant Directors and such other officers as the
Board may, by notification in the official Gazette, appoint.”
1b. Inserted by Finance Act, 2005
2. Substituted by the FA, 2007, Before substitution sections 3D was as under:-
“3D. Directorate General, Valuation and Post-Clearance Audit.- The Directorate
General Valuation and Post-Clearance Audit shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as
the Board may, by notification in the official Gazette, appoint.”
3. Inserted by Finance Act, 2006
4. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(2), page 198. At the time of
substitution section 5 was as under:-
“5. Delegation of powers.- The Board, may by notification in the official Gazette, and
subject to such limitation or conditions, if any, as may be specified therein, empower by name or
designation –
(a) any 4a[Additional Collector] of Customs to exercise any of the powers of a Collector of
Collector of Customs under this Act;
(b) any 4b[Assistant Collector or Deputy Collector] of Customs to exercise any of the
powers of a 4c[Additional Collector] of Customs under this Act;
(c) any other officer of Customs to exercise any of the powers of an 4a[Assistant Collector
or Deputy Collector] of Customs under this Act.”.
4a. Substituted for the words “Deputy Collector” by the Finance Act, 1996 (IX of 1996).
4b. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996).
4c. The brackets and figure “(1)” omitted by Customs (Amendment) Ordinance, 2000
(XLVI of 2000), S.2, page 651.
5. Renumbered by Finance Act, 2005 (VII of 2005),S.3(3), page 131.
6. Added by Finance Act, 2005 (VII of 2005), S.3(3),page 131.
7. Substituted by Customs (Amendment) Ordinance,1996 and Finance Act,1996(IX of
1996)S.4(2),Page 469. Earlier same amendment was made to the Customs (Amendment)
Ordinance, 1995 (CXIV of 1995) and Customs (Amendment) Ordinance, 1996 (XVI of 1996), At
the time of substitution section 6 was as under:-
“6. Entrustment of functions of the customs officers to certain other officers.- The
Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally,
any functions of any officer of customs under this Act to any officer of the 7a[Federal] or
Provincial 7a[Government].”.
7a. Substituted for the words “Central Government” by Finance Ordinance, 1972 (XXI of
1972), S.3, page 56 and Second Schedule S.1, page 76.
8. Renumbered by Finance Act, 2004 (II of 2004), S.3(1), page 13.
9. Added by Finance Act, 2004 (V of 2004), S.3(1), page.
10. Inserted by Finance Act,2008 (I of 2008) Page 45)
11. Inserted by Finance Act, 2012.
12. Inserted by Finance Act, 2013
13. Substituted for the word ‘Central” by F.A,2014
14. Substituted for the words "Federal Board of Revenue by Finance Act, 2017
15. Inserted by Finance Act, 2017
16. Substituted by Finance Act, 2017, At the time of substitution section76 was as under:-
7. Assistance to the officers of customs.- All officers of 13[Federal] Excise, Police, and the Civil
Armed Forces, and all officers engaged in the collection of land-revenue are hereby empowered and required
to assist officers of customs in the discharge of their functions under this Act .
17. Inserted by Finance Act, 2017
18. Substituted by Finance Act, 2019 (At the time of substitution , the word was “Directorates”)
19. As amended by Tax Laws( Amendment) Act, 2020 (March)
20. Inserted by Finance Act, 2020 (June)
21. Added by Finance Act, 2021
13
THE CUSTOMS ACT,1969
CHAPTER III
down in the licence or for any violation of any of the provisions of this Act or any rules
made thereunder, after the licensee has been given proper opportunity of showing cause
against the proposed cancellation.
(4) Pending consideration whether a licence be cancelled under sub-section (3), the
respective Collector of Customs in his own jurisdiction may suspend the licence.]
9
[12A. Power to appoint or licence common warehouses.—(1) At any
warehousing station, the respective Collector of Customs in his own jurisdiction may,
from time to time, appoint or licence common warehouses wherein dutiable goods may
be deposited without payment of customs-duty on owner or licensee own account.
(2) Every application for a licence for a common warehouse shall be made
in such form as may be prescribed by the respective Collector of Customs in his own
jurisdiction:
Provided that where the Customs Computerized System is operational, the application
shall be filed to the respective Collector of Customs through the system in the manner
as may be prescribed by rules.
(3) A licence granted under this section may be cancelled by the respective
Collector of Customs in his own jurisdiction for infringement of any condition laid
down in the licence or for any violation of any of the provisions of this Act or any rules
made thereunder, after the licensee has been given proper opportunity of showing cause
against the proposed cancellation.
(4) Pending consideration whether a licence be cancelled under sub-section
(3), the respective Collector of Customs in his own jurisdiction may suspend the
licence.]
10
[13. Power to licence private warehouses.—(1) At any warehousing station, the
respective Collector of Customs in his own jurisdiction may, from time to time, Ilicence
private warehouses wherein dutiable goods may be deposited without payment of
customs-duty.
(2) Every application for a licence for a private warehouse shall be made in
such form as may be prescribed by the respective Collector of Customs in his own
jurisdiction:
Provided that where the Customs Computerized System is operational, the
application shall be filed to the respective Collector of Customs through the system in
the manner as may be prescribed by rules.
(3) A licence granted under this section may be cancelled by the Collector of
Customs in his own jurisdiction for infringement of any condition laid down in the
licence or for any violation of any of the provisions of this Act or any rules made
thereunder, after the licensee has been given proper opportunity of showing cause
against the proposed cancellation.
(4) Pending consideration whether a licence may be cancelled under sub-
section (3), the respective Collector of Customs in his own jurisdiction may suspend
that licence.]
14. Stations for officers of customs to board and land.- The Collector of
Customs may, from time to time, appoint, in or near any customs-port, stations or limits
15
THE CUSTOMS ACT,1969
at or within which vessels arriving at or departing from such port shall bring to for the
boarding or landing of officers of customs, and may, unless separate provisions
therefore have been made under the Ports Act,1908 (XV of 1908) direct at what
particular place in any such port vessels, not brought into port by pilots, shall anchor or
moor.
5&7
[(14A. Provision of security and accommodation at Customs-ports, etc.- (1) Any
agency or person including port authorities managing or owning a customs-port, a
customs-airport or a land customs station or a container freight station shall provide at
its or his own cost adequate security and accommodation to customs staff for
residential purposes, offices, examination of goods, detention and storage of goods and
for other departmental requirements to be determined by the Collector of Customs and
shall pay utility bills, rent and taxes in respect of such accommodation.
(2) Any agency or person including, but not limited to port authorities managing or
owning a customs port, a customs airport or a land customs station or a container freight
station, shall entertain delay and detention certificate issued by an officer not below the
rank of Assistant Collector of Customs and also refund demurrage charges which the
agency or person has received on account of delay because of no fault of importers or
exporters.]
LEGAL REFERENCE
1. Substituted by the Finance Act, 1973 (L of 1973), S.9(2), page 531, At the time of substitution
clause (a) was as under:-
“(a) the ports and airports which alone shall be customs ports or customs airports for the
unloading of imported goods and loading of goods for export or any class of such goods.”.
2. Substituted by the Finance Act, 1990 (VII of 1990), S.6(1), page 34. At the time of substitution
section 12 was as under:-
“12. Power to appoint public warehouse.- At any warehousing station, the Collector of
Customs may, from time to time, appoint, public warehouses wherein dutiable goods may be
deposited without payment of customs duty.”.
3. Added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(2), page 223.
4. Substituted by the Finance Act, 1986 (I of 1986), page 10. At the time of substitution sub-section
(3) was as under:-
“(3) Every license granted under this section may be cancelled on conviction of the licensee
of any offence under this Act relating to warehouse, or for infringement of any condition
provided in the license, or on the expiration of one month’s notice in writing given to the license
by the Collector of Customs.”.
5. Added by the Finance Ordinance, 1984 (XXVIII of 1984).
6. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(2), page 305.
7. Substituted by Finance Act, 2013. At the time of substitution section 14A was as under:
(14A. Provision of accommodation at Customs-ports, etc.- Any agency or person managing
or owning a customs-port, a customs-airport or a land customs station shall provide at its or his
own cost adequate accommodation to customs staff for offices, examination of goods, detention
and storage of goods and for other departmental requirements to be determined by the Collector
of Customs 6[and shall pay utility bills, rent and taxes in respect of such accommodation.]
8. Substituted by Finance Act, 2013. At the time of substitution section 12 was as under:
“12. Power to appoint or license public warehouses.- (1) At any warehousing station,
the Collector of Customs may, from time to time, appoint or license public warehouses wherein
dutiable goods may be deposited without payment of customs-duty.
16
THE CUSTOMS ACT,1969
(2) Every application for a license for a public warehouse shall be made in such form as may be
prescribed by the Collector of Customs.
(3) A license granted under this section may be cancelled by the Collector of Customs for
infringement of any condition laid down in the license or for any violation of any of the provisions
of this Act or any rules made there under, after the licensee has been given proper opportunity of
showing cause against the proposed cancellation.
(4) Pending consideration whether a license be cancelled under sub-section (3), the
Collector of Customs may suspend the license.]
9. Added by Finance Act, 2021
10. Substituted by Finance Act, 2013. At the time of substitution section 13 was as under:
[13. Power to license private warehouses.- (1) At any warehousing station, the Collector
of Customs may, from time to time, license private warehouses wherein dutiable goods may be
deposited 3[without payment of customs-duty.]
(2 ) Every application for a license for a private warehouse shall be made in such form as
may be prescribed by the Collector of Customs.
4[(3) A license granted under this Section may be cancelled by the Collector of
Customs for infringement of any condition laid down in the license or for any violation of any of
the provisions of this Act or any rules made there under, after the licensee has been given proper
opportunity of showing cause against the proposed cancellation].
(4) Pending consideration whether a license be cancelled under sub-section (3), the
Collector of Customs may suspend the license.]
CHAPTER IV
(a) counterfeit coins, forged or counterfeit currency notes, and any other
counterfeit product;
(b) any obscene book, pamphlet, paper, drawing, painting, representation,
figure, photograph, film, or, article, video or audio recording, CDs or
recording on any other media;
(c) goods having applied thereto a counterfeit trade mark within the
meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false
trade description within the meaning of the Copyright Ordinance, 1962
(XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits
Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance,
2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and
the Trade Marks Ordinance, 2001 (XIX of 2001) 5[Omitted];
(d) goods made or produced outside Pakistan and having applied thereto any
name or trade mark, being or purporting to be the name or trade mark of
any manufacturer, dealer or trader in Pakistan, unless,-
17
THE CUSTOMS ACT,1969
18
THE CUSTOMS ACT,1969
6
[Provided that the period of detention shall not exceed fifteen days which may
be extended by the Chief Collector or Director General for a period not exceeding
fifteen days.]
LEGAL REFERENCE
1. Substituted by the Finance Act, 2004 (II of 2004)S.3(2), page 13. At the time of substitution
section 15 was as under:-
Provided that the 1a[Federal Government] may, by an order in writing, exempt from the
provisions of this section any goods or any class or description of goods in transit to a
foreign territory.”
2. The words “Central Government” substituted by the Finance Ordinance, 1972 (XXI of 1972),
Section 3, page 56 and Second Schedule S.1, page 76 w.e.f. 17th June, 1972.
3. Substituted by the Finance Act, 2005. At the time of substitution section 17 was as under:-
“17. 3a[Seizure] and confiscation of goods imported in breach of Section 15 or Section
16.- Where any goods ae imported into or attempted to be exported out of Pakistan in
violation of the provisions of section 15 or of a notification under section 16, such
goods shall, without prejudice to any other penalty to which the offender may be liable
under this Act, or any other law, but subject to rules, be liable to 3a[seizure] and
confiscation.”.
3a. Substituted for the word “Detention” by the Finance Act, 1987 (VI of 1987), S.8(2), page 34.
4. Inserted by Finance Act, 2009
19
THE CUSTOMS ACT,1969
5. The words and figure” , or goods imported or exported in contravention of the provisions of
section 32” omitted by the Finance Act, 2011
6. Inserted by Finance Act,2020 (June)
20
THE CUSTOMS ACT,1969
CHAPTER V
levy an additional customs-duty on such imported goods as are specified in the First
Schedule, at a rate not exceeding thirty-five per cent of value of such goods as
determined under section 25 2a[ or, as the case may be, section 25A:]
2b
[Provided that the cumulative incidence of customs-duties leviable
under sub-sections (1) 120[Omitted] and (5) shall not exceed the rates agreed to by the
Government of Pakistan under multilateral trade agreements.]
21
THE CUSTOMS ACT,1969
(6) The additional customs-duty levied under sub-section (5) shall be,-
(a) in addition to any duty imposed under sub-sections (1) and (3) or
under any other law for the time being in force; and
(b) leviable on and from the day specified in the notification issued
under that sub-section, notwithstanding the fact that the official
Gazette in which such notification appears is published at any
time after that day.]
3
[18A. Special customs duty on imported goods.- The Federal Government may, by
notification in the official Gazette, levy a special customs duty on the importation of
such of the goods specified in the First Schedule as are of the same kind as goods
produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise
leviable under 106[the Federal Excise Act, 2005], on the goods produced or
manufactured in Pakistan:
Provided that the exemption of any goods from the whole or any part of the duty
of excise for the time being in force shall not prevent the Federal Government from
levying a special customs duty on the importation of goods of the same kind:
Provided further that, for the purposes of the Sales Tax 4[***] Act 1990 (VII of
1990), the special customs duty shall not constitute a part of the value of supply.]
5[18B OMITTED.]
.
6
[18C. Rates of duty and taxes and determination of origin under trade
agreements.- (1) Where under a trade agreement between the Government of Pakistan
and the Government of a foreign country or territory, duty at a rate lower than that
specified in the First Schedule is to be charged on articles which are the produce or
manufacture of such foreign country or territory, the Federal Government may, by
notification in the official Gazette, make rules for determining if any article is the
produce or manufacture of such foreign country or territory and for requiring the owner
to make a claim at the time of importation, supported by such evidence as may be
prescribed in the said rules, for assessment at the appropriate lower rate under such
agreement.
22
THE CUSTOMS ACT,1969
(3) For the purposes of this section and the First Schedule “preferential area
or free trade area” means any country or territory which the Federal Government may,
by notification in the official Gazette, declare to be such area.
12
[(2) A notification issued under sub-section (1) shall be effective from the
day specified therein, notwithstanding the fact that the issue of the official Gazette in
which such notification appears is published at any time after that day.]
13
[(3) Notwithstanding anything contained in any other law for the time being
in force, including but not limited to the Protection of Economic Reforms 1992 (XII of
1992), and notwithstanding any decision or judgment of any forum, authority or court,
no person shall, in the absence of a notification by the Federal Government published in
the official Gazette expressly granting and affirming exemption from customs duty, be
entitled to or have any right to any such exemption from or refund of customs duty on
the basis of the doctrine of promissory estoppel or on account of any correspondence or
admission or promise or commitment or concessionary order made or understanding
given whether in writing or otherwise, by any government department or authority.]
11
[(4) The Federal Government shall place before the National Assembly all
notifications issued under this section in a financial year.
(5) Any notification issued under sub-section (1) after the commencement of the
Finance Act, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the
financial year in which it was issued 115[:]
115
[Provided that all such notifications, except those earlier rescinded, shall be
deemed to have been in force with effect from first day of July, 2016 and shall
continue to be in force till thirtieth day of June, 2018, if not earlier rescinded:
Provided further that all notifications issued on or after the first day of July,
2016, and placed before the National Assembly as required under sub-section
(4) shall continue to be in force till thirtieth day of June, 120,122,129,131[2022], if
not earlier rescinded by the Federal Government or the National Assembly.]
14
[19A. Presumption that incidence of duty has been passed on to the buyer.- Every
person who has paid the customs duty and other levies on any goods under this Act
shall, unless the contrary is proved by him, be deemed to have passed on the full
incidence of such customs duty and other levies to the buyer as a part of the price of
such goods.
19B. Rounding off of duty, etc.- The amount of duty, interest, penalty, fine or any
other sum payable, and the amount of refund, drawback or any other sum due, under the
provisions of this Act shall be rounded off to the nearest one hundred rupees and, for
this purpose, where such amount is fifty rupees or more, it shall be increased to one
hundred rupees and if such part is less than fifty rupees, it shall be ignored.]
24
THE CUSTOMS ACT,1969
14a,129
[19C. Minimal duties not to be demanded.- Where the value of imported goods
does not exceed five thousand rupees, no duties and taxes shall be demanded, subject to
conditions and restrictions as may be prescribed by the Board under the rules.]
15 112
[20. [Omitted]
21. Power to deliver certain goods with-out payment of duty and to repay duty
on certain goods.- Subject to such conditions, limitations or restrictions as it thinks fit
to impose, the Board may, in such general cases as may be prescribed by rules or in
particular cases by special order, authorize-
25
THE CUSTOMS ACT,1969
(iv) any other tax chargeable on the material used in the manufacture
of such goods; or
(v) any other tax chargeable on such goods,
on payment of customs-duty equal to the aggregate amount of all such
duties and taxes calculated at the rates prevailing at the time and place of
importation of goods; or
(c) in any other case, without payment of duty.
29a[22A. Temporary export of imported plant and machinery.- Imported plant
and machinery, temporarily exported that have not undergone any alteration,
renovation, addition or refurbishment, may be re-imported duty free subject to the
specific or general terms and conditions the Board may by the rules prescribe.]
23. Goods, derelict, wreck, etc.- All goods, derelict, jetsam, flotsam and
wreck, brought or coming into Pakistan, shall be dealt with as if they were imported
into Pakistan.
26
THE CUSTOMS ACT,1969
24. Provisions and stores may be exported free of duty.- Goods produced or
manufactured in Pakistan and required as provisions and stores on any conveyance
proceeding to any foreign port, airport or station may be exported free of customs-
duty,30[***] in such quantities as the appropriate officer may determine having regard
to the size of the conveyance, the number of passengers and crew and the length of the
voyage or journey on which the conveyance is about to depart.
31
[25. 31b[Value of imported and exported goods].- (1) Transaction Value.- The
customs value of imported goods, subject to the provisions of this section and the rules,
shall be the transaction value, that is the price actually paid or payable for the goods
when sold for export to Pakistan:
Provided that-
(a) there are no restrictions as to the disposition or use of the goods
by the buyer other than the restrictions which –
(i) are imposed or required by law;
(ii) limit the geographical area in which the goods may be
resold; or
(iii) do not affect the value of the goods;
(2) Subject to clause (b), in determining the customs value under sub-section(1),-
(a) there shall be added to the price actually paid or payable for the
imported goods, if not already included in the price;
27
THE CUSTOMS ACT,1969
(b) there shall also be added to such price, to the extent that they are
incurred by the importer but are not included in the price actually
paid or payable of the imported goods-
(c) there shall also be added to such price the value, apportioned as
appropriate, of the following goods and services where supplied
directly or indirectly by the importer or his related person free of
charge or at reduced cost, for use in connection with the
production and sale for export of the imported goods, to the
extent that such value has not been included in the price actually
paid or payable:
(d) there shall also be added to such price, royalties and license fees
related to the goods being valued that the buyer must
pay, either directly or indirectly, as a condition of sale of the
goods being valued, to the extent that such royalties and fees are
not included in the price actually paid or payable; and
(e) there shall also be added to such price, the value of any part of
the proceeds of any subsequent resale, disposal or use of the
imported goods that accrues directly or indirectly to the seller;
(f) if sufficient information is not available for any reason, with
respect to any adjustments referred to above, the transaction
value, of the imported goods shall be treated , for the purpose of
sub-section (1), as the one that cannot be determined;
(3) If the buyer and seller are related in terms of the rules the transaction
value shall be accepted for the purposes of sub-section (1); whenever:
28
THE CUSTOMS ACT,1969
Provided that in applying the foregoing tests due account shall be taken of
demonstrated differences in commercial levels, quantity levels, the elements
enumerated in sub-section (2) and costs incurred by the seller in sales in which the
seller and the buyer are not related that are not incurred by the seller in sales in which
the seller and the buyer are related;
32
[(4) Where, in relation to the goods being valued, the appropriate officer is of
the opinion that the importer has not, for the purposes of clause (a) of sub-section (3),
demonstrated that the relationship did not influence the price or, for the purposes of
clause (b) of sub-section (3), that the declared price at which the goods are imported
does not closely approximate to one of the test values mentioned therein, the
appropriate officer shall inform the importer of his reservations in writing and give the
importer an opportunity to justify the price difference. If the importer fails to justify the
price difference, the customs value cannot be determined under the provisions of sub-
section (1).]
(b) If neither the imported goods nor identical nor similar imported
goods are sold at or about the time of importation of the goods
being valued, the customs value shall, subject otherwise to the
provisions of clause (a) of this sub-section, be based on the unit
price at which the imported goods or identical or similar
imported goods are sold in Pakistan in the conditions as imported
at the earliest date after the importation of the goods being valued
but before the expiry of ninety days after such importation.
(c) If neither the imported goods nor identical nor similar imported
goods are sold in the country of importation in the condition as
imported, then, if the importer so requests, the customs value
shall be based on the unit price at which the imported goods,
after further processing, are sold in the greatest aggregate
quantity to persons in the country of importation who are not
related to the persons from whom they buy such goods, due
allowance being made for the value added by such processing
and the deductions provided for in clause (a).
(9) FALL BACK METHOD.- If the customs value of the imported goods
cannot be determined under sub-sections (1),(5),(6),(7) and (8), it shall, subject to the
rules, be determined 132[using reasonable means] on the basis of a value derived from
among the methods of valuation set out in sub-sections (1),(5),(6),(7) and (8), that,
when applied in a flexible manner to the extent necessary to arrive at a customs value.
(10) Sub-sections (1), (5), (6), (7), (8) and (9) define how the customs
value of imported goods is to be determined 38a[***]. The methods of customs
valuation 38b[may or may not] be applied in a sequential order except reversal of the
31
THE CUSTOMS ACT,1969
order of sub-section (7) and (8), at the importer’s request, if so agreed by Collector of
the Customs.
(a) “customs value of imported goods” means the value of goods for
the purposes of levying duties of customs and other taxes on
imported goods;
(b) “identical goods” means goods which are the same in all respects
including physical characteristics, quality and reputation. Minor
differences in appearance would not preclude goods otherwise
conforming to the definition from being regarded as identical;
(c) “similar goods” means goods which although not alike in all
respects, have like characteristics and like component materials
which enable them to perform the same functions and to be
commercially interchangeable. The quality of the goods, their
reputation and the existence of a trademark are among the factors
to be considered in determining whether goods are similar;
(d) the terms “identical goods” and “similar goods” do not include as
the case may be, goods which incorporate or reflect engineering
development, art work, design work, and plans and sketches for
32
THE CUSTOMS ACT,1969
(a) that the goods are treated as having been delivered to the buyer
on board the conveyance in which they are to be exported ; and
(b) that the seller will bear all packing, commission, transport,
loading and all other costs, charges and expenses (including any
92
[regulatory duty which may be chargeable under sub-section (3)
of section 18] incidental to the sale and to the delivery of the
goods on board the conveyance in which they are to be exported
and which will be included in the customs value;
(c) that where goods are manufactured in accordance with any
patented invention or are goods to which any protected design
has been applied, the customs value shall be determined taking
into consideration the value of the right to use design in respect
of the goods;
(d) that where goods are exported for sale, other disposal or use,
whether or not after further manufacture, under a Pakistan trade
mark, the customs value shall be determined taking into
consideration the value of the right to use the patent, design or
trade mark in respect of the goods.
Explanation I.-A sale in open market between a buyer and a seller independent of each
other presupposes-
(a) that the customs value is the sole consideration and sale is
between a buyer and seller independent of each other.
33
THE CUSTOMS ACT,1969
(2) The Customs value determined under sub-section (1) shall be the
applicable customs value for assessment of the relevant imported or exported goods
116
[:
Provided that where the value declared in a goods declaration, filed under
section 79 or section 131 or mentioned in the invoice retrieved from the consignment,
as the case may be, is higher than the value determined under sub-section (1), such
higher value shall be the customs value.]
135
[(2A)In case of any conflict in the customs value determined under sub-
section (1), the Director General of Valuation shall determine the applicable customs
value.]
34
THE CUSTOMS ACT,1969
124
(3) [Omitted]
[(4) The customs value determined under sub-section (1) 136[,or the case may
93
be under sub-section (2A)] 125[omitted], shall be applicable until and unless revised or
rescinded by the competent authority.]
120
[25AA. Power to use data exchange information for determination of customs
value.- Any information or data, available under clause (b) of sub-section (1) of section
219A, may be utilized for the purpose of assessment including valuation.
42
[25B. [Omitted.]
43
[25C. Power to takeover the imported goods.- (1) If any person makes an offer in
writing to buy the imported goods sought to be cleared at value declared by an importer
in the goods declaration, 44[and the Collector of Customs is satisfied that the declared
value is not the actual transactional value, he may after approval of the 136[respective
Chief Collector] order the following without prejudice to any other action against the
importer or his authorised agent, namely:-
(2) The imported goods taken over under sub-section (1) shall be delivered
to the offerer on submission of two pay orders, one equal to the customs value declared
in the goods declaration plus five per cent in the name of importer and the other pay
order equal to the remaining amount of value of imported goods and the amount of
customs duties and other taxes leviable on the imported goods in the name of Collector
of Customs;
35
THE CUSTOMS ACT,1969
(3) In case the local buyer fails to take the delivery of the goods on payment
of value and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-
five per cent of the amount shall be fore-feited in favour of the Federal Government and
imported goods shall be released to the importer as per customs value determined under
44
[sections 25 or 25A as the case may be.]
44a,94,137
[25D. Review of the value determined.—Notwithstanding the provision
contained in section 25A, the Director General Valuation may on his own motion or in
pursuance to a review petition made to him within thirty days from the date of
determination by any person or an officer of Customs may rescind or determine the
value afresh:
Provided that the proceedings so initiated shall be completed within sixty days
of the filing of the review petition or initiation of proceedings as the case may be.]
45
[26. Obligation to produce documents and provide information.- (1) Any person, as
and when required, in writing, by an officer of customs not below the rank of an Assistant
Collector, shall,-
(3) The Board may require in writing any person, department, company or
organization, as the case may be, to provide information held by that person,
department, company or organization, which in the opinion of the Board is required for
36
THE CUSTOMS ACT,1969
26B. Access for the purposes of audit.- (1) The appropriate officer of Customs, after
giving a notice in writing specifying the date of visit, shall have access to business or
manufacturing premises, registered office or any other place where any goods, stocks,
documents or records relating to the ongoing audit are kept or maintained. Such officer
may inspect the goods, stocks, documents, records, data, correspondence, accounts,
statements, utility bills, bank statements, information regarding nature and sources of
funds or assets with which his business is financed, and any other records or documents
required under any Federal or Provincial laws, maintained in any form or mode. Such
an officer may take into his custody such documents, records or any part thereof, in
such form as he may deem fit, against a signed receipt.
37
THE CUSTOMS ACT,1969
(2) In all cases, except where it would defeat the purpose of the audit, a
reasonable advance notice regarding a visit shall be given to the person concerned.
(3) Whosoever causes any obstruction or fails to provide any documents, record,
statement etc, as required under subsection (1), with an intention to defeat the purpose
of the Act by way of destroying, altering or concealing any books, documents or
records required to be maintained under this Act, shall be guilty of an offence under this
section.]
47
[27. Abatement allowed on damaged or deteriorated goods.- (1) If before the
examination of any imported goods the owner thereof informs 48[an officer of Customs
not below the rank of] 49[Assistant Collector] in writing that the value of the goods as
declared in the 50[goods declaration] has diminished as a result of some damage or
deterioration sustained by them before or during unloading at the port of destination, an
officer of Customs not below the rank of 49[Assistant Collector] may appraise the value
of the damaged or deteriorated goods in the manner given in sub-section (2) and the
owner shall be allowed abatement of duty in proportion to the diminution of value so
appraised, whether duty is leviable ad valorem or otherwise.
(2) For the purposes of this section, the value of damaged or deteriorated
goods may be ascertained by either of the following methods at the option of the
owner:-
(a) value may be appraised by an Officer of Customs not below the
rank of 49[Assistant Collector] on the basis of physical
examination of the goods; or
(b) such goods may be sold by public auction or by tender or, with
the consent of the owner, in any other manner and the gross
sale proceeds shall be deemed to be the value of such goods
inclusive of duties.]
51
[(3) In the case of short-landing or short-shipment of goods, the appropriate
officer may, if satisfied with regard to the bonafide of short-landing or short-shipment
of goods, allow reduction in duty proportionate to the goods short-landed or short-
shipped on first examination.]
52,95
[27A. Allowing mutilation or scrapping of goods.- At the request of the owner
138
[, to be made before the filing of goods declaration] the mutilation or scrapping of
goods as are notified by the Board, may be allowed, in the manner as prescribed by the
rules and where such goods are so mutilated or scrapped they shall be chargeable to
duty at such rates as may be applicable to the goods as if they had been imported in the
mutilated form or as scrapped]:
38
THE CUSTOMS ACT,1969
129
[Provided that the goods imported in new condition shall not be allowed
scrapping and mutilation and shall be classified and chargeable to leviable duty and
taxes as new goods.]
28. Power to test and denature imported spirit.- When by any law for the time
being in force a duty lower than that prescribed by 54[this Act] is imposed on denatured
spirit, any such spirit imported into Pakistan may, subject to rules, be tested and if
necessary adequately denatured by officers of customs, at the expense of the person
importing the same, before the customs-duty is charged thereon.
(a) in the case of goods cleared for home consumption under section 79, on
the date on which a 59&59A[goods declaration] is manifested under that
section; and
(b) in the case of goods cleared from a warehouse under section 104, on the
date on which a 59&59A[goods declaration] for clearance of such goods is
manifested under that section:
60
[Provided further that, in respect of goods for the clearance of which a
59/59A
[goods declaration] for clearance has been manifested under section 104, and the
duty is not paid within seven days of the 59/59A[goods declaration] being manifested, the
rate of duty applicable shall be the rate of duty on the date on which the duty is actually
paid 61[:]
62
[Provided further that in case of the goods illegally removed from the
warehouse, the rate of duty shall be the rate prevalent either on the date of in-bonding
or detection of case or date of payment of the duty and taxes, whichever is higher:
Provided further that in case of exercising option for redemption of fine in lieu
of confiscation of the goods seized during anti-smuggling operations, the rate of duty
shall be the rate prevalent either on the date of seizure or date of payment of duty and
taxes, whichever is higher:]
39
THE CUSTOMS ACT,1969
Provided further that the 127[Board, with approval of the Federal Minister-in-
charge] may, by notification in the official Gazette, for any goods or class of goods,
specify any other date for the determination of rate of duty.
Explanation:- For the purpose of this section “manifested” means that when a machine
number is allocated to 59&59A[goods declaration] and is registered in Customs record.]
63
[30A. Date of determination of rate of duty for clearance through the Customs
Computerized System.- Subject to the provisions of section 155A, the rate of duty
applicable to any imported or exported goods if cleared through the Customs
Computerized System, shall be the rate of duty in force on;-
Provided that where a goods declaration has been filed in advance of the arrival
of the conveyance by which the goods have been imported, the relevant date for the
purposes of this section shall be the date on which the manifest of the conveyance is
filed at the customs-station of first entry:
Provided further that the 127[Board, with approval of the Federal Minister-in-
charge] may, by notification in the official Gazette, specify any other date for the
determination of rate of duty in respect of any goods or class of goods.]
31. Date for determination of rate of 66A[duty on goods exported].- The rate and
amount of duty applicable to any goods exported shall be the rate and amount
chargeable at the time of the delivery of the 59&59A[goods declaration] under section
131:
Provided that where the export of any goods is permitted without a 59&59A[ goods
declaration] or in anticipation of the delivery of such a 59&59A[declaration], the rate and
amount of duty applicable shall be the rate and amount chargeable on the date on which
loading of the goods on the outgoing conveyance commences 66B[:]
67
[Provided further that the 127[Board, with approval of the Federal Minister-in-
charge] may, by notification in the official Gazette, for any goods or class of goods,
specify any other date for determination of the rate of duty.]
68
[31A. Effective rate of duty.- (1) Notwithstanding anything contained in any other
law for the time being in force or any decision of any Court, for the purposes of section
30 69[,30A] and 31, the rate of duty applicable to any goods shall include any amount of
40
THE CUSTOMS ACT,1969
duty imposed under section 18 89[,18A and 18C]. 70[Omitted] and the amount of duty
that may have become payable in consequence of the withdrawal of the whole or any
part of the exemption or concession from duty whether before or after the conclusion of
a contract or agreement for the sale of such goods or opening of a letter of credit in
respect thereof.
71
[(2) For the purpose of determining the value of any imported or exported
goods, the rate of exchange at which any foreign currency is to be converted into
Pakistan currency shall be the rate of exchange in force on the date immediately
preceding the relevant date referred to in sections 30, 30A or 31.]
72
32. [False] statement, error, etc.- (1) If any person, in connection with any
matter of customs,-
77
[(3A) Notwithstanding anything contained in sub-section (3), where any duty
109
[,taxes] or charge has not been levied or has been short-levied or has been
erroneously refunded and this is discovered as a result of an audit or examination of an
importer’s 128[or exporter’s] accounts or by any means other than an examination of the
documents provided by the importer 128[or exporter] at the time the goods were
imported 128[or exported], the person liable to pay any amount on that account shall be
served with a notice within 100[five] years of the relevant date requiring him to show
cause why he should not pay the amount specified in the notice 78[:]
79
[Provided that if the recoverable amount in a case is less than 140[twenty
thousand] rupees, the Customs authorities shall not initiate the aforesaid action.]
(5) For the purposes of this section, the expression “relevant date” means –
(a) in any case where duty is not levied, the date on which an order
for the clearance of goods is made;
(b) in a case where duty is provisionally assessed under section 81,
the date of adjustment of duty after its final assessment;
(c) in a case where duty has been erroneously refunded, the date of
its refund;
(d) in any other case, the date of payment of duty or charge 96[;]
96
[(e) in case of clearance of goods through the Customs Computerized
System, on self assessment or electronic assessment, the date of
detection.]
81[32A.Fiscal fraud.- (1) If any person, in connection with any matter related to
customs-
(a) causes to submit documents including those filed electronically, which
are concocted, altered, mutilated, false, forged, tempered or counterfeit
to a functionary of customs;
(b) declares in the 82[goods declaration] electronically filed customs
declaration, the name and address of any exporter or importer which is
physically non-existent at the given address;
(c) declares in the 82[goods declaration] electronically filed customs
declaration, an untrue information regarding 97[payment of duties and
taxes through self-assessment,] description, quantity, quality, origin and
value of goods;
42
THE CUSTOMS ACT,1969
129
[(ca) declares value which is significantly higher or lower than the actual
value, that is, the price actually paid or payable for the goods when sold
for export to Pakistan, proceedings may be initiated under this section
subject to conditions or limitations as may be prescribed by the Board
under the rules.]
(d) alters, mutilates or suppresses any finding of the customs functionary
on any document or in the computerized record; or
(e) attempts, abets or connives in any action mentioned in clauses (a), (b),
129
[(c),(ca)] and (d) above, he shall be guilty of an offence under this
section.
period of two years from the date of detection of such mis-declaration as to why penal
action shall not be initiated:
Provided that if goods have not been cleared from customs, such goods shall
also be liable to be seized:
141
[Provided further that Board may, by notification in the official Gazette, make
rules for carrying out the purposes of this section.]
(2) Any proceedings under this section, shall not be initiated, without the
explicit approval of Board.]
33. Refund to be claimed within 84[one year].- (1) No refund of any customs-
duties or charges claimed to have been paid or over-paid through inadvertence, error or
misconstruction shall be allowed, unless such claim is made within 84[one year] of the
date of payment 91[.]
91,118
[Omitted]
(2) In the case of provisional payments made under section 81, the said
period of 84[one year] shall be reckoned from the date of the adjustment of duty after its
final assessment.
101
(3) In the case where refund has become due in consequence of any decision
or judgment by any appropriate officer of Customs or the Board or the Appellate
Tribunal or the Court, the said period of one year shall be reckoned from the date of
such decision or judgment, as the case may be.]
120
[(3A) The claim filed under this section shall be disposed of 128[subject to
pre-audit] within a period not exceeding one hundred and twenty days from the date of
filing of such claim:
Provided that the said period may, for reasons to be recorded in writing, be
extended by the Collector of Customs for a period not exceeding ninety days.]
119
[(4) No refund shall be allowed under this section, if the sanctioning
authority is satisfied that the incidence of customs duty and other levies has been passed
on to the buyer or consumer.]
128
[(5) For the purpose of this section, the Board may, by notification in the
official Gazette, specify the jurisdiction and powers of the officers of Customs to
sanction refund in terms of amount of Customs duty and other taxes involved.]
44
THE CUSTOMS ACT,1969
34. Power to give credit for, and keep account-current of duties and charges.-
An officer of customs, not below the rank of 85[Assistant Collector 102[omitted] of
customs may, in the case of any mercantile firm or public body, if he so thinks fit,
instead of requiring payment of customs duties or charges as and when they become
due, keep with such firm or body an account-current of such duties and charges, which
account shall be settled at intervals of not exceeding one month, and such firm or body
shall make a deposit or furnish a security sufficient in the opinion of that officer to
cover the amount which may at any time be payable by it in respect of such duties or
charges.
LEGAL REFERENCE
1. Substituted by the Finance Act, 1975 (L of 1975), S.7(1), page 8. At the time of substitution
section 18 was as under:-
“1a.18. Goods dutiable.- Except as hereinafter provided, customs duties shall be levied at such
rates as may be prescribed under the Tariff Act, 1934 (XXXII of 1934) or under any other law
for the time being in force on
(a) goods imported into or exported from Pakistan;
(b) goods brought from any foreign country to any customs-station, and without payment
of duty, there transshipped or transported for, or thence carried to, and imported at, any
other customs stations; and
(c) goods brought in bond from one customs-station to another.”.
1a. Substituted by Finance Act, 2005 (At the time of substitution section 18 was as under:-
1b Added by the Finance Act, 2007.
“18. Goods dutiable.- (1) Except as hereinafter provided, customs-duties shall be levied at
such rates as are prescribed in the First Schedule and the Second Schedule or under any other law
for the time being in force on-
(a) goods imported into or exported from Pakistan;
(b) goods brought from any foreign country to any customs-station, and without
payment of duty, there transshipped or transported for, or thence carried to, and
imported at any other customs-station; and
(c) goods brought in bond from one customs-station to another.
(2) The Federal Government may, on the recommendation, of the National Tariff
Commission constituted under the National Tariff Commission Act,1990 (VI of 1990) (the
Commission), provided the National Tariff Commission follows the same procedure as
prescribed in the said Act by notification in the official Gazette, levy, subject to such conditions,
limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the
goods specified in the First Schedule at a rate not exceeding one hundred per cent of the value of
such goods, as determined under section 25 or section 25B and may, by a like notification, levy a
regulatory duty on all or any of the goods, exported from Pakistan:-
(i) at a rate not exceeding one hundred per cent of the value of the goods as determined
under section 25 or section 25B, if such goods are specified in the Second Schedule;
and
(ii) at a rate not exceeding fifty per cent of the amount which represents the value of the
goods as determined under section 25 or section 25B, if such goods are not specified in
the Second Schedule.
(3) The regulatory duty levied under sub-section (2) shall –
(a) be in addition to any duty imposed under sub-section (1) or under any other
law for the time being in force; and
45
THE CUSTOMS ACT,1969
(b) be leviable on and from the day specified in the notification issued under that
sub-section, notwithstanding the fact that the issue of the official Gazette in
which such notification appears is published at any time after that day.]
(4) Any notification issued under sub-section (2) shall, if not earlier rescinded, stand
rescinded on the expiry of the financial year in which it was issued.”
Provided that for the purposes of Sales Tax Act, 1990, such service charge shall not constitute a
part of the value of supply.”.
“20. Board’s power to grant exemption from duty in exceptional circumstances.- Under
circumstance of exceptional nature, the Board may, subject to such conditions,
limitations or restrictions, if any, as it thinks fit to impose, by a special order in each
case recording such circumstances, exempt any goods from payment of the whole or
any part of the customs duties chargeable there."”
46
THE CUSTOMS ACT,1969
to be used in the production, manufacture, processing, repair or refining in Pakistan of
goods of such classes or descriptions as it may prescribe;”.
19 Substituted by Customs (Amendment) Act, 1999 (II of 1999). At the time of substitution clause (c)
was as under:-
“(c) the repayment in whole or in part of the customs-duties paid on the importation of any
goods of such classes or description as it may prescribed, which have been used in the
production, manufacture, processing, repair or refitting in Pakistan of goods of such
classes or descriptions as it may prescribe, provided such repayment shall not be made
in respect of the class or description of goods for which drawback can be claimed
under Section 37.”.
20. Substituted for the full stop by the Finance Act, 2005.
21. Added by the Finance Act, 2005.
22. Substituted for the full stop by the Finance Act, 2005.
23. Added by the Finance Act, 2005.
24 Inserted by Finance Act, 1990 (VII of 1990), S.6(2), page 35. Omitted by Customs (Amendment)
Act, 1999 (II of 1999) and inserted by Finance Ordinance, 2001 (XXV of 2001), S.4(3), page 305.
At the time of omission this section was as under:-
“21-A. Deferment of collection of customs-duties.- Subject to such conditions, limitations or
restrictions as it thinks fit to impose, the Board may, in such general cases as may be prescribed
by rules or in particular case by special order, defer the collection of customs-duties either in
whole or in part.”.
25. Renumbered by the Finance Act, 2006.
26. Added by the Finance Act, 2006.
26a. For the word “fifteen” the word “fourteen” was substituted vide FA, 2007.
27. Substituted by Finance Act,1975(L of 1975),S.7(2), Page 9 w.e.f.7 th June,1975.At the time of
substitution the proviso was as under:-
“Provided if such goods have been imported within two years of their exportation
27a[(or within such further period not exceeding three years, as the Collector may allow in any
case,)] and have continued to be the property of the person by whom or on whose account they
were exported and have not undergone any processing since their exportation.”.
27a. Inserted by the Finance Act, 1973(L of 1973)
28. Substituted “Assistant Collector” by F.A,1996(IX of 1996) S.4(6).Page 476.
29. Substituted by Finance Act,1973 (L of 1973, S.9(3), Page 531. At the time of substitution it was
as under:-
“(a) where at the time of exportation of such goods, drawback of any customs or Federal
Excise duty or any other tax levied by the 29a[Federal Government] or any Federal Excise duty
levied by the Provincial Government was allowed, on payment of customs-duty equal to the
amount of such drawback.”.
29a. The words “Central Government” substituted by Finance Ordinance, 1972 (XXXI of
1972 ), S.3, and Second Schedule S.1, page 76.
29a. Inserted section 22A by the Finance Act, 2007.
30 Omitted the comma and words “, Federal Excise duty and sales tax” by Finance Ordinance,
2002 (XXVII of 2002), S.4(3), page 223.
31. Substituted by the Finance Act, 1998 (III of 1998), S.4(II), page 39 at the time of substitution was
as under:-
“25. Value of imported and exported goods.- (1) The value of any imported goods shall be
taken to be the normal price, that is to say, the price which they would fetch, on the date referred
to in section 30 on a sale in open market between a buyer and a seller independent of each other.
(2) The normal price of any imported goods shall be determined on the following
assumptions, namely:-
that the goods brought by sea or land are treated as having been delivered to
the buyer at the port or place of importation, as the case may be, and that
goods brought by air are treated as having been delivered to the buyer at the
airport or place where they are unloaded in Pakistan or, if the aircraft first
47
THE CUSTOMS ACT,1969
lands in Pakistan at some other airport or place without unloading the goods,
at such other airport or place;
(b) that the seller will bear freight, insurance, commission shall and all other
costs, charges and expenses incidental to the sale and the delivery of the
goods at that port, airport or place which will be included in the normal price;
(c) that the buyer will bear any duties or taxes applicable in Pakistan which will
not be included in the normal price.
(3) Where the imported goods to be valued –
(a) are manufactured in accordance with any patented invention or are goods to
which any protected design has been applied; or
(b) are imported under a foreign trade mark or are imported for sale, other
disposal or use (whether or not after further manufacture) under a foreign
trade mark;
the normal price shall be determined on the assumption that it includes the value of the
right to use the patent, design or trade mark in respect of the goods.
(4) The value of any exported goods shall be taken to be the normal price, that is to say,
the price which they would fetch, at the prescribed time, on a sale in open market for
exportation to the country to which the goods are consigned between a seller and a
buyer independent of each other.
Explanation.- For the purposes of this sub-section, the expression
“prescribed time” shall mean the time when the bill of export is delivered under section
131 or, when export of the goods is allowed without a bill of export or in anticipation
of the delivery of a bill of export, the time when export of the goods commences.
(5) The normal price of any exported goods shall be determined on the following
assumptions, namely:-
(a) that the goods are treated as having been delivered to the buyer on board the
conveyance in which they are to be exported; and
(b) that the seller will bear all packing commission, transport, loading and all
other costs, charges and expenses (including any export duty which may be
chargeable) incidental to the sale and to the delivery of the goods on board
the conveyance in which they are to be exported and which will be included
in the normal price.
(6) where the exported goods to be valued -
(a) are manufactured in accordance with any patented invention or are goods to
which any protected design has been applied; or
(b) are exported for sale, other disposal or use under a Pakistan trade mark or are
exported for sale, other disposal or use (whether or not after further
manufacture) under a Pakistan trade mark, the normal price shall be
determined on the assumption that it includes the value of the right to use the
patent, design on trade mark in respect of the goods.
Explanation I.- A sale in open market between a buyer and a seller
independent of each other presupposes –
(a) that the price is the sole consideration; and
(b) that the price is not influenced by any commercial, financial or other
relationship, whether by contract or otherwise between the seller or any
person associated in business with him and buyer or any person associated in
business with him other than the relationship created by the sale itself;
(c) that no part of the proceeds of any subsequent resale, other disposal or use of
the goods will accrue, either directly or indirectly, to the seller or any person
associated to business with him.
Explanation II.- Two persons shall be deemed to be associated in business
with one another if, whether directly or indirectly, either of them has any interest in the
business or property of the other or both have a common interest in any business or
property or some third person has an interest in the business or property of both of
them.”.
48
THE CUSTOMS ACT,1969
31a. Substituted by the Finance Act, 1999 (IV of 1999), S.10(3), page 758. At the time of substitution
section 25 was as under:-
“25. Value of imported and exported goods.- (1) Subject to the provisions of this section
and the rules, the value of any imported goods shall be the transaction value, that is, the
price actually paid or payable for the goods when sold or export to Pakistan.
(2) In determining the value under sub-section (1) –
(a) there shall be added to the price actually paid or payable for the
imported goods:-
(i) the cost of transport of the imported goods to the port,
airport or place of importation;
(ii) loading, unloading and handling charges or any other
charges associated with or incidental to the transport of
the imported goods to that port, airport or place of
importation; and
(iii) the cost of insurance.
(b) to the extent that they are incurred by the buyer but are not
included in the price actually paid or payable for the imported
goods, there shall also be added to such price –
(i) commission and brokerage, except buying commissions;
(ii) the cost of containers which are treated as being one for
customs purposes with the goods in question; and
(iii) the cost of packing whether for labour or materials;
(c) the value, apportioned as appropriate, of the following goods and
services where supplied directly or indirectly by the buyer free of
charge or at reduced cost for use in connection with the production
and sale for export of the imported goods, to the extent that such
value has not been included in the price actually paid or payable,
shall also be added to such price –
(i) materials, components, parts and similar items
incorporated in the imported goods;
(ii) tools, dies, moulds, and similar items used in the
production of the imported goods; and
(iii) materials consumed in the production of the imported
goods;
(d) royalties and license fees related to the imported goods being
valued that the buyer must pay, either directly or indirectly, as a
condition of sale of the imported goods being valued, to the extent
that such royalties and fees are not included in the price actually
paid or payable shall also be added to such price; and
(e) the value of any part of the proceeds of any subsequent resale,
disposal or use of the imported goods that accrues directly or
indirectly to the seller shall also be added to the price actually paid
or payable for such goods.
(3) The value of exported any goods shall be taken to be the normal price, that is
to say, the price which they would fetch, at the prescribed time, on a sale in
open market for exportation to the country to which the goods are consigned
between a seller and a buyer independent of each other.
Explanation.- For the purposes of this sub-section, the expression
“prescribed time” shall mean the time when the bill of export is delivered
under section 131 or; when export of the goods is allowed without a bill of
export or in anticipation of the delivery a bill of export, the same when
export of the goods commences;
(4) The normal price of any exported goods shall be determined on the following
assumptions; namely:-
(a) that the goods are treated as having been delivered to the buyer on
board the conveyance in which they are to be exported; and
49
THE CUSTOMS ACT,1969
(b) that the seller will bear all packing, commission, transport, loading
and all other costs, charges and expenses (including any export
duty when may be chargeable) incidental to the sale and to the
delivery of the goods on board the conveyance in which they are to
be exported and which will be included in the normal price.
(5) Where the exported goods to be valued –
(a) are manufactured in accordance with any patented invention or are
goods to which any protected design has been supplied; or
(b) are exported for sale, other disposal or use, whether or not after
further manufacture, under a Pakistan trade mark; the normal price
shall be determined on the assumption that it includes the value of
the right to use the patent, design or trade mark in respect of the
goods.
Explanation I.- A sale in open market between a buyer and a seller
independent of each other presupposes–
(a) that the price is the sole consideration;
(b) that the price is not influenced by any commercial,
financial or other relationship; whether by contract or
otherwise between the seller or any person associated in
business with him other than the relationship created by
the sale itself; and
(c) that no part of the proceeds of any subsequent resale,
other disposal or use of the goods will accrue, either
directly or indirectly, to the seller or any person
associated in business with him.
Explanation II.- Two person shall be deemed to be associated in
business with one another if whether directly or indirectly, either of them has
any interest in the business or property of the other or both have a common
interest in any business or property or some third person has an interest in the
business or property of both of them.”.
31b. For the words “Determination of Customs value of goods” the words Value of imported and
exported goods” were substituted by the Finance Act, 2007.
32. .Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of
substitution sub-section (4) was as under:-
“(4) Where, in relation to the goods being valued, the appropriate officer is of the opinion
that the declared price at which the goods are imported is different from test values as mentioned
above, the appropriate officer shall inform the importer his reservations in writing and require the
importer to justify the price difference. If the importer fails to justify the price difference, the
transaction value shall be taken to be the one that cannot be determined under sub-section (1).”.
33. Substituted by Finance Ordinance, 2000..
34 Inserted for the word “the” by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198.
35. Added by the Finance Ordinance, 2000 (XXI of 2000),S.4(3)(ii), page 199.
36. Substituted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), page 198. At the time of
substitution this sub-section (6) was as under:-
“(6) Transaction value of similar goods.- If the customs value of the imported goods
cannot be determined under the provisions of sub-section (5), it shall, subject to rules, be the
transaction value of similar goods sold for export to Pakistan and exported at or about the same
time as the goods being valued, and the provisions of clauses (b), (c) and (d) of sub-section (5)
shall mutatis mutandis also apply in respect of similar goods.”.
37 Added the word “and” by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I), p.198.
38. Sub-clause (iii) omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(3)(I)p.198.
38a. The words “under this Act” were omitted by the Finance Act, 2007.
38b. For the words “are required to” the words “may or may not” were substituted by the FA, 2007.
50
THE CUSTOMS ACT,1969
Explanation II.- For the purposes of this sub-section, the expression “prescribed time” shall
mean the time when the bill of export or goods declaration is delivered under section 131 or
131A or, when export of the goods is allowed without a bill of export or goods declaration] or in
anticipation of the delivery of a bill of export or goods declaration, the time when export of the
goods commences.
40a. Substituted by the Finance Act, 2007. Before substitution the section 25A was as under:-
41[25A. Powers to determine the customs value.- (1) Notwithstanding the provisions contained
in section 25, the Collector of Customs on his own motion, or the Director of Customs Valuation
on a reference made to him by any person, may determine the customs value of any goods or
category of goods imported into or exported out of Pakistan after following the scheme and
sequential order as laid down under section 25.
(2) The customs value determined under sub-section (1) shall be the applicable customs value for
assessment of the relevant imported or exported goods.
(3) In case of any conflict in the customs value determined under sub-section (1), the Director-
General of Customs Valuation shall determine the applicable customs value.]
42. Inserted by Finance Act, 1988 and Omitted by Finance Act, 2004 (II of 2004), S.3(4),
page 14. At the time of omission was as under:-
“25B. Determination of Value not covered by section 25.- (1) If the value of the
imported goods cannot be determined under section 25, the value, subject to the rules, shall be
the transaction value of identical goods sold for export to Pakistan and exported at or about the
same time as the goods being valued.
(2) If the value of the imported goods cannot be determined under sub-section (1), the
value, subject to the rules, shall be the transaction value of similar goods sold for export to
Pakistan and exported at or about the same time as the goods being valued.
(3) If the value of the imported goods cannot be determined under sub-section (2), the
value shall be determined as follows-
(a) if the imported goods or identical or similar imported goods are sold in Pakistan in the
condition as imported, then the value of the imported goods shall be based on the unit
price at which the imported goods or identical or similar imported goods, are so sold in
the greatest aggregate quantity, at or about the time of the importation of the goods
being valued, to persons who are not related to the persons from whom they buy such
goods, subject to such deductions as may be provided in the rules; and
(b) If neither the imported goods nor identical nor similar goods are sold for export to
Pakistan then, if the appropriate officer so decides, the value shall be based on the unit
price at which the imported goods, after processing, are sold in the greatest aggregate
quantity to persons in the country of importation who are not related to the persons
from whom they buy such goods, due allowance being made for the value added for all
such processing and the deductions as may be provided in the rules.
(4) If the value of the imported goods cannot be determined under sub-section (3), the
value of imported goods shall be based on computed value as may be prescribed by the rules:
Provided that, at the request of the importer, the order of application of sub-
sections (3) and (4) may be reversed, if so agreed by the appropriate officer.
(5) If the computed value of the imported goods cannot be determined under sub-section
(4), the value shall be determined using reasonable means consistent with the principles and
general provisions contained in section 25 and on the basis of data available with the Controller
of Customs Valuation, due regard being given to the circumstances surrounding the sale.]
43. Inserted by Finance Act, 1979 and amended by the Finance Act, 2006. At the time of amendments
the existing Section 25C was as under:-
“25A. Power to takeover the imported goods.- (1) If any person makes an offer in writing to
buy the imported goods sought to be cleared at value declared by an importer in the bill of entry
or goods declaration, the Assistant Collector or any other higher officer of customs may order the
51
THE CUSTOMS ACT,1969
following without prejudice to any other action against the importer or his authorised agent,
namely:-]
(i) entertain offer by any other person to buy these goods at substantially higher value than
the declared customs value in the bill of entry 37[or goods declaration] and payment of
customs duties and other leviable taxes thereon, provided such offer is accompanied by
a pay order equal to twenty-five per cent of the amount of each value and duties and
other taxes leviable on imported goods;
(ii) give an option in writing to the importer of such goods for clearance of imported goods
at the customs value equal to such highest offer for purchase of goods and payment of
customs duties and other taxes chargeable thereon; and
(iii) in case the importer fails to clear the imported goods within seven days of the receipt of
notice under clause (ii) above, the appropriate officer may takeover the goods on
payment of customs value declared in the bill of entry 37[or goods declaration] and an
amount equal to five per cent of such declared value;
(2) The imported goods taken over under sub-section (1) shall be delivered to the offerer
on submission of two pay orders, one equal to the customs value declared in the bill of entry or
goods declaration plus five per cent in the name of importer and the other pay order equal to the
remaining amount of value of imported goods and the amount of customs duties and other taxes
leviable on the imported goods in the name of Collector of Customs;
(3) In case the local buyer fails to take the delivery of the goods on payment of value
and taxes as prescribed in sub-section (2) above, the pay order equal to twenty-five per cent of
the amount shall be fore-feted in favour of the Federal Government and imported goods shall be
released to the importer as per customs value determined under section 25.”
44. Substituted by the Finance Act, 2006.
44a. Section 25D inserted by the Finance Act, 2007.
45. Substituted by the Finance Act, 2006. At the time of substitution the section 26 was as under:-
“26. Power to require information to be furnished.- An appropriate officer may, by
a requisition in writing, require any person concerned with the importation, exportation,
purchase, sale, transport, storage or handling of any goods which are being or have been
imported or exported to furnish such information relating to the goods as may be necessary for
determining the legality or illegality of the importation or exportation of such goods, the value of
such goods, the nature, amount and source of the funds or assets with which the goods were
acquired and the customs duty chargeable thereon, or for deciding anything incidental thereto and
to produce, and allow the officer to inspect and take extracts from or make copies of any invoice,
bill of lading, book of account or other book or document of whatever nature relating to the
goods.”
46. Inserted by Finance Act, 2006.
47. Substituted by Finance Act, 1986
48. inserted by Finance Act, 2006.
49. By Finance Act, 2006, the words “ or Deputy Collector” were omitted..
50. Substituted the words ”bill of entry” with the” words goods declaration” through Finance Act,
2006.
51. Inserted by Finance Act, 2006.
52. Added by Finance Act, 2005.
53. Inserted by Finance Act, 2006.
54. Substituted for the words, coma and figure by the Federal Laws (Remission & Declaration)
Ordinance, 1981.
55. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(a), page 22.
55A. By the Finance Act, 2006 the words ”bill of entry or bill of export or” were omitted..
56. Inserted by the Finance Act, 2003 (I of 2003), S.5(7)(b)(I) and (ii),, page 22.
56A. By the Finance Act, 2006 the words “bill of entry or bill of export or” was omitted.
57. Inserted by Finance Act, 2006.
58. Substituted by Finance Act, 1972, Finance Act, 1998, and Finance Act, 1999.
59. Substituted by the Finance Act, 2003.
59A.. Omitted the words “bill of entry or” by the Finance Act, 2006.
59B. Inserted by the Finance Act, 2002.
60. Second proviso added by the Finance Act, 1979.
52
THE CUSTOMS ACT,1969
61. Substituted for full stop by the Finance Act, 1992 (VII of 1992), S.6(3), page 114.
62. Added by the Finance Act, 1992 (VII of 1992), S.6(3), page 114.
63. Inserted by Finance Act, 2003.
64. Semi colon and the word “and” omitted by the Finance Act, 2005.
65. Clause (c ) omitted by the Finance Act2005.
66A. By Finance Act, 2006, the words ”export duty” were substituted..
66B. Substituted for full stop by Finance Act 1992.
67. Added by Finance Act, 1992.
68. Inserted by the Finance Act, 1988.
69. Inserted by Finance Act, 2003.
70. Omitted by Finance Act, 1991[section 2of the Finance Ordinance,1982(XII of 1982), and section
5 of the Finance Act,1985(I of 1985), and the anti-dumping or countervailing duty imposed under
the Import of Goods (Anti-dumping and Countervailing Duties)Ordinance, 1983 (III of 1983)].
71. Substituted by Finance Act, 2003.
72. Substituted by the Federal Laws(Remission and Declaration) Ordinance,1981.
73. Substituted for the word ”three” by the Finance Ordinance, 2000.
74. Substituted by the Finance Ordinance, 2000.
75. Substituted full stop by the Finance Act, 2005.
76. Added by the Finance Act,2005.
77. Inserted by the Finance Ordinance, 2000.
78. Substituted full stop by the Finance Act, 2005.
79. Added by the Finance Act, 2005.
80. Substituted the words “ the amount of duty payable by him” by the FA, 2006.
81. Inserted by the Finance Act, 2004.
82. Substituted for the word “bill of entry or bill of export or” by the FA, 2006.
83. Inserted by the Finance Act, 2005.
84. Substituted by the Finance Act, 2005.
85. Substituted for the words “Assistant Collector” by the FA, 1996.
86. Omitted by Finance Act,2008(I of 2008) (Page-45)
87. The word “Fourteen” substituted with word “KIBOR plus three” by Finance Act,2009.
88. Inserted by Finance Act,2009.
89. Inserted by Finance Act,2009..
90. The word “or” and sub-clause (c) added by Finance Act,2009.
91. The full stop substituted with colon and thereafter a new proviso added by Finance Act,2009.
92. The words” export duty which may be chargeable” substituted by Finance Act,2010.
93. Added by Finance Act,2010.
94. Substituted by Finance Act,2010. At the time of substitution the section 25D was as under:-
“25D. Review of the value determined.- Where the customs value has been determined
by the Collector of Customs or Director of valuation or any other authority competent to do so,
a review application shall lie before Director-General of Valuation and any proceeding pending
before any court, authority or tribunal shall forthwith abate”.
95. Substituted by Finance Act,2010. At the time of substitution the section 27A was as under:-
53
THE CUSTOMS ACT,1969
103. Inserted by the Finance Act, 2012.
104. Inserted by Finance Act, 2013
105. Substituted by F.A, 2014
106. Substituted for the words and figures “the Central Excises and Salt Act,1944 (I of 1944)” by
Finance Act, 2014
107. Ommited by F.A, 2014 “At the time of omission was as under:-
5(d) If, in applying the provisions of this sub-section, there are two or more transaction
values of identical goods that meet all the requirements of this sub-section and clauses
(b),(d),(e) and (f) of sub-section (13), the customs value of the imported goods shall be
the lowest such transaction value, adjusted as necessary in accordance with clauses (b)
and (c).]
[(1) The 8[Federal Government], subject to such conditions, limitations or restrictions, if any, as
it thinks fit to impose, may, by notification in the official Gazette, exempt any goods imported
into, or exported from, Pakistan or into or from any specified port or station or area therein, from
the whole or any part of the customs-duties chargeable thereon 9[and may remit fine, penalty,
charge or any other amount recoverable under this Act] 10[:]
54
THE CUSTOMS ACT,1969
127. Substituted by Finance Act, 2019. At the time of substitution the words was “Federal
Government”
128. Inserted by Finance Act, 2019.
129. Inserted by Finance Act, 2020 (June)
130. Added by Finance Act, 2021
131. substituted figure “2022” by Finance Act, 2021
132. Inserted by Finance Act, 2021
133. Inserted by Finance Act, 2021
134. Added by Finance Act, 2021
135. Added by Finance Act, 2021
136. Substituted by Finance Act, 2021
137. Substituted by Finance Act, 2021 “at the time of substitution section 25D was as under:
25D. Revision of the value determined.- Where the customs value has been determined under
section 25A by the 125[omitted] Director of Valuation the revision petition may be filed before
the Director-General of Valuation within thirty days from the date of determination of customs
value and any proceeding pending before any court, authority or tribunal shall be referred to the
Director-General for the decision.]
138. Inserted by Finance Act, 2021
139. Substituted by Finance Act, 2021 “at the time of substitution first proviso to section 30 was as
under:
Provided that, where a 59&59A[goods declaration] has been manifested in advance of the arrival of
the conveyance by which the goods have been imported, the relevant date for the purposes of this
section shall be the date on which the manifest of the conveyance is delivered 59B[at the port of
first entry]:
140. Substituted by Finance Act, 2021
141. Substituted by Finance Act, 2021 “at the time of substitution second proviso to section 32C was
as under:
Provided further that a team consisting of Additional Collector, duly assisted by an
expert in the relevant field and an officer of State Bank of Pakistan (SBP) as specified, shall
submit a report in writing with evidence for the Chief Collector. The said report shall also be
furnished to the SBP for action, if any, under the law regulated by SBP.
55
THE CUSTOMS ACT,1969
CHAPTER – VI
DRAWBACK
(1) the goods are identified to the satisfaction of an officer of customs not
below the rank of 1/2[Assistant Collector] of Customs at the customs-
station, to be the same as had been imported, and
(2) the goods are entered for export within two years of the date of their
importation, as shown by the records of the custom-house or if such time
is extended by the Board or the Collector of Customs for sufficient cause
within such extended time:
Provided that the Collector of Customs shall not extend the time beyond three
years of the importation of such goods.
Explanation.- For the purposes of this section, the goods shall be deemed to have been
entered for export on the date on which the 3 [goods declaration] is delivered to the
appropriate officer under section 131 4[*****].
36. Drawback on goods taken into use between importation and exportation.-
Notwithstanding anything contained in section 35, the repayment of duty as drawback
in respect of goods which have been taken into use between their importation and
subsequent exportation shall be made in accordance with the provisions of the rules
made in that behalf.
37. Drawback on goods used in the manufacture of goods which are exported.-
Where it appears to the Board that in respect of goods of any class or description
manufactured in Pakistan and exported to any place outside Pakistan, a drawback of
customs-duties should be allowed on any imported goods of a class or description used
in the manufacture of such exported goods, the Board may, by notification in the
official Gazette, direct that drawback shall be allowed in respect of such imported
goods to such extent and subject to such condition as may be provided in the rules.
56
THE CUSTOMS ACT,1969
38. Power to declare what goods are identifiable and to prohibit draw-back in
case of specified foreign territory.- (1) The Board may, from time to time, by
notification in the official Gazette, declare what goods shall, for the purposes of this
Chapter, be deemed to be not capable of being easily identified.
(a) upon goods which are required to be included in the export manifest
and are not so included, or
(b) when the claim is for drawback amounting, in respect of any single
shipment, to less than 6[or equal to] hundred rupees, or
(c) unless the claim for drawback has been made and established at the time
of export.
LEGAL REFERENCE
1. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.4(6),
page 476
2. By the Finance Act, 2006, the words “or Deputy Collector” were omitted.
3. Substituted for the words “bill of export” by the Finance Act, 2006.
4. Added by Finance Act, 2004 (II of 2004), S.3(7), page 16 and omitted the word, figure and letter
“or 131A” by the Finance Act, 2005 .
5. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56
and Second Schedule S.1, page 76.
6. Inserted by the Finance Act, 2007.
57
THE CUSTOMS ACT,1969
CHAPTER – VII
(2) The provisions of sub-section (1) shall not apply in relation to any
conveyance which is compelled by accident, stress of weather or other unavoidable
cause to call, or land at a place other than a customs-station but the person-in-charge of
any such conveyance-
(b) shall not, without the consent of any such officer, permit any
goods carried in the conveyance to be unloaded from, or any of
the crew or passengers to depart from its vicinity;
(c) shall comply with any direction given by such officer with
respect ot any such goods; and no passenger or member of the
crew shall, without the consent of any such officer, leave the
vicinity of the conveyance:
Provided that nothing in this section shall prohibit the departure of any
passenger or member of the crew from the vicinity of, or the removal of goods from, the
conveyance where such departure or removal is necessary for reasons of health, safety
or the preservation of life or property 1[ : ]
2
[Provided further that the person in charge of a conveyance, that is en route to
Pakistan from a point outside Pakistan shall, unless otherwise approved by the
Collector,-
17
(a) [deliver] to the Customs, in such form and manner (for example, in an
electronic form and manner) as may be approved in writing by the
Collector (either generally or for a particular case or class of cases), such
advance 17[information] as may be prescribed for any or all of the
following matters, namely:-
(i) the impending arrival of the conveyance;
(ii) its voyage;
58
THE CUSTOMS ACT,1969
Provided that the provisions of sub-section (1) and (2) shall apply to,-
(a) a conveyance that has arrived in Pakistan from a point outside Pakistan;
(b) a conveyance departing from Pakistan for a point outside Pakistan;
(c) a conveyance that is within Pakistan and that is carrying international
cargo or international crew or any international passenger, whether or
not the conveyance is also carrying domestic cargo;
(d) any other conveyance that is within Pakistan and that a Customs officer
has reasonable cause to suspect has been, or is about to be, involved in
the commission of an offence under this Act or the importation or
exportation of any dutiable, prohibited, restricted, notified or confiscated
goods.
(4) The person in charge of, the owner of goods, any member of the crew of,
any passenger on, a conveyance to which this sub-section applies, shall,-
(a) answer any question asked by a customs officer under this Act relating to
the conveyance and its voyage and any persons or goods that are or have
been carried by the conveyance; and
(b) produce forthwith, at the request of any Customs officer, any documents
within that person’s possession or control relating to any of those
matter.]
4[43. Delivery of import manifest in respect of a vessel.- (1) The Board may, by
notification in the official Gazette, fix a place beyond which no vessel arriving shall
pass until an import manifest has been delivered to Customs or other person duly
authorized to receive in such form, manner and time as the Board may prescribe.
59
THE CUSTOMS ACT,1969
(2) On receipt of such import manifest the vessel may proceed to come
beyond the fixed place. No pilot shall bring a vessel into customs-port without having
been so authorized by Customs.
(3) If any vessel arrives at any customs-port in which a place has not been so
fixed, master of such vessel shall, within twenty-four hours after arrival of such vessel,
deliver an import manifest to Customs in such form and manner as the Board may
prescribe.
45. Signature and contents of import manifest and amendment thereof.- (1)
Every manifest delivered under section 43 or section 44 shall be signed by the person-
in-charge of the conveyance or his duly authorized agent and shall specify all goods
imported in such conveyance showing separately all goods, if any, intended to be
landed, transshipped, transited or taken into another customs-station or to a destination
outside Pakistan and stores intended for consumption at the customs-station or on the
outward voyage or journey, and shall be made out in such form and contain such further
particulars as the Board may from time to time direct5[:]
6
[Provided that the Collector of Customs, through a special order, on such terms
and conditions as he may deem fit to impose, may allow acceptance of digital
signatures instead of manual ones, on electronically transmitted import manifest.]
(2) The appropriate officer shall permit the person-in-charge of a
conveyance or his duly authorized agent to correct any obvious error in the import
manifest or to supply any omission which in the opinion of such officer results from
accident or inadvertence, by furnishing an amended or supplementary import manifest
7
[or by making an amendment electronically] and shall levy thereon such fees as the
Board from time to time directs:
19
Provided that before the berthing of the vessel or the cross-over of the vehicle,
as the case may be, the person incharge of a conveyance or his duly authorized agent
may amend the import manifest subject to the rules notified by the Board.]
19
(3) [omitted]
60
THE CUSTOMS ACT,1969
46. Duty of person receiving import manifest.- The person receiving an import
manifest under section 43 or section 44 shall countersign the same and enter thereon
such particulars as the Collector of Customs from time to time directs 8[:]
9
[Provided that no countersignatures shall be required in respect of an import
manifest filed electronically.]
47. Bulk not to be broken until manifest, etc., delivered and vessel entered
inwards.- No vessel arriving in any customs-port shall be allowed to break bulk, until
an import manifest has been delivered as hereinbefore provided or until copy of such
manifest together with an application for entry of such vessel inwards, has been
presented by the master to the appropriate officer and an order has been given thereon
for such entry.
48. Power to require production of documents and ask questions.- (1) When an
import manifest is presented, the person-in-charge of a conveyance or his duly
authorized agent, if required so to do by the appropriate officer, shall deliver to the
officer the bill of lading or the bill of freight or a copy thereof for every part of cargo or
goods laden on board, journey log-book and any port clearance, docket or other paper
granted in respect of such conveyance at the place from which it is stated to have come,
and shall answer all such questions relating to the conveyance, goods, crew and voyage
or journey as are put to him by such officer.
(2) The appropriate officer may, if any requisition or question made or put
by him under this section is not complied with or answered, refuse to grant permission
to a vessel to break bulk and to other conveyance to land the imported goods, as the
case may be.
50. Order for entry out-wards or loading of goods to be obtained before export
goods are loaded.- (1) No goods other than passengers’ baggage and mail bags shall
be loaded on a conveyance until-
(a) in the case of a vessel, a written application for entry of such vessel
outwards, subscribed by the master of such vessel, has been made to the
appropriate officer and an order has been given thereon for such entry;
and
(b) in the case of any other conveyance, a written application for authority to
load the goods subscribed by the person-in-charge of the conveyance has
61
THE CUSTOMS ACT,1969
been made to the appropriate officer and an order has been given thereon
authorizing the loading.
(2) Every application made under this section shall specify the particulars as
prescribed by the Board.
51. No vessel to depart without port clearance.- (1) No vessel, whether laden or
in ballast, shall depart from any customs-port until a port-clearance has been granted by
the appropriate officer.
(2) No pilot shall take charge of any vessel proceeding to sea, unless the
master of such vessel produces a port-clearance.
53. Application for port clearance of vessels.- (1) Every application for port-
clearance shall be made by the master of a vessel at least twenty-four hours before the
intended departure of the vessel:
(2) The master shall, at the time of applying for port clearance,-
62
THE CUSTOMS ACT,1969
54. Conveyances other than vessels to deliver documents and answer questions
before departure.- The person-in-charge of a conveyance other than a vessel or his
duly authorized agent shall -
(b) deliver to the appropriate officer such bills of export 14[or goods
declaration] or other documents as such officer acting under the general
instructions of the Collector of Customs requires; and
(c) answer such questions respecting the departure and destination of the
conveyance as are put to him by the appropriate officer.
(a) the provisions of section 53 or section 54, as the case may be, have been
complied with;
(b) all station or port dues and other charges and penalties payable in respect
of such vessel, or by the owner or master thereof, or in respect of such
other conveyance by the owner or person-in-charge thereof, and all
taxes, duties and other dues payable in respect of any goods loaded
therein, have been duly paid, or their payment secured by such
guarantee, or by such deposit at such rate, as such officer directs;
(c) where any export goods have been loaded without payment or securing
payment as aforesaid of all taxes, duties and other dues payable in
respect thereof or in contravention of any provision of this Act or the
rules or of any other law for the time being in force relating to export of
goods.
63
THE CUSTOMS ACT,1969
56. Grant of port clearance or permission for departure.- When the appropriate
officer is satisfied that the provisions of this Chapter relating to the departure of
conveyance have been duly complied with, he shall grant a port-clearance to the master
of the vessel or a written permission for departure to the person-in-charge of any other
conveyance and shall return at the same time to such master or person-in-charge one
copy of the manifest duly countersigned by the appropriate officer.
Pakistan territory, demand the return of port-clearance or the written permission for
departure, as the case may be.
(2) Any such demand may be made in writing or may be communicated to
the person-in charge of the conveyance by wireless, and, if made in writing it may be
served, by delivery to the person in-charge or his agent personally; or
LEGAL REFERENCE
1. Substituted for the full stop by the Finance Act, 2005
2. Added by the Finance Act, 2005
3. Added by the Finance Act, 2005
4 .Substituted by the Finance Act, 2003 (I of 2003), S.5(8), page 23. At the time of substitution section
43 was as under:-
43. Delivery of import manifest in respect of a vessel.- (1) The Board may, by notification in the official
Gazette, fix a place in any river or port beyond which no vessel arriving shall pass until an import
manifest has been delivered to the pilot, officer of customs or other person duly authorised to receive
the same.
(2) If in any river or port wherein a place has been fixed by the Board under this section, the master of
any vessel arriving remains outside or below the place so fixed, such master shall, nevertheless, within
twenty-four hours after the vessel anchors, deliver an import manifest to the pilot, officer of customs
or other person duly authorised to receive the same.
(3) If any vessel arrives at any customs-port in which a place has not been so fixed, the master of such
vessel shall, within twenty-four hours after such vessel has anchored within the limits of the port,
deliver an import manifest to the pilot, officer of customs or other person authoirsed to receive the
same.
(4) Notwithstanding anything herein before contained, the appropriate officer may allow an import
manifest to be delivered in anticipation of the arrival of a vessel.”.
5. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4($), page 305.
6. Added by the Finance Ordinance,2001(XXV of 2001),S.4(4),p-305&306.
7 Inserted by the Finance Act, 2003 (I of 2003), S.5(10), page 23.
8. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(11), page 23.
9. Added by the Finance Act, 2003 (I of 2003), S.5(11), page 23.
10. Substituted for the full stop by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page 306.
65
THE CUSTOMS ACT,1969
11. Added by the Finance Ordinance, 2001 (XXV of 2001), S.4(5), page 306.
12 Inserted by the Finance Act, 2003 (I of 2003), S.5(12), page 23.
13. By the Finance Act, 2006, the words “ bills of export or” were omitted.
14. Inserted by the Finance Act, 2003 (I of 2003), S.5(13), page 23.
15. Substituted for the words “Central Government” by the Finance Ordinance, 1972, S.3, page 56 and
Second Schedule S.1, page 76.
16. Inserted by Finance Act,2009..
17. Substituted/inserted by Finance Act, 2018
18. Substituted by Finance Act, 2021 “at the time of substitution section 44 was as under:
“44. Delivery of import manifest in respect of a conveyance other than a vessel.- The person-in-
charge of a conveyance other than a vessel shall 16[before arrival or], within twenty-four hours after
arrival thereof at a land customs-station or customs-airport, as the case may be, deliver 16[or file
electronically]an import manifest to the appropriate officer.”
19. Added proviso to sub-section (2) and omitted sub-section (3) of section 45 by Finance Act, 2021
66
THE CUSTOMS ACT,1969
CHAPTER VIII
62. Officer’s power of access, etc. - (1) Every officer deputed as aforesaid shall
have free access to every part of the conveyance and may-
(a) cause any goods to be marked before they are unloaded from the
conveyance;
(b) lock up, seal, mark or otherwise secure any goods carried in the
conveyance or any place or container in which they are carried;
or
(2) If any box, place or closed receptacle in any such conveyance be locked,
and the key be withheld, such officer shall report the same to the
appropriate officer, who may thereupon issue to the officer on board the
conveyance, or to any other officer under his authority, a written order
for search.
67
THE CUSTOMS ACT,1969
(a) on any public holiday within the meaning of section 25 of the Negotiable
Instruments Act,1881(XXVI of 1881), or on any day on which the
discharge or shipping of cargo at customs-port or loading, unloading
passage or delivery of cargo at any land customs-station or customs-
airport, as the case may be, is prohibited by the Board by notification in
the official Gazette; or
(b) on any day except between such hours as the Board may, from time to
time, by a like notification, appoint 1[:]
2
[Provided that where the Customs Computerized System is in
operation, all loading and discharge may be allowed by the Collector of
Customs round the clock and on all days.]
66. Goods not to be loaded or unloaded except at approved places.- Save where
general permission is given under section 67 or with permission in writing of the
appropriate officer, no imported goods shall be unloaded or goods for export loaded at
any place other than a place duly approved under clause (b) of section 10 for the
unloading or loading of such goods.
68. Boat-note.- (1) When any goods are water-borne for the purposes of being
landed from any vessel and warehoused or cleared for home-consumption, or of being
68
THE CUSTOMS ACT,1969
shipped for exportation on board any vessel, there shall be sent, with each boat-load or
other separate dispatch, a boat-note specifying the number of packages so sent and the
marks or number or other description thereof.
(2) Each boat-note for goods to be landed shall be signed by an officer of the
vessel, and likewise by the officer of customs on board, if any such officer be on board,
and shall be delivered on arrival to any officer of customs authorized to receive the
same.
(4) The officer of customs who receives any boat-note of goods landed, and
the officer of customs, master or other officer as the case may be, who receives any
boat-note of goods shipped, shall sign the same and note thereon such particulars as the
Collector of Customs may from time to time direct.
(5) The Board may from time to time, by notification in the official Gazette,
suspend the operation of this section in any customs-port or part thereof.
71. Power to prohibit plying of unlicensed cargo-boats.- (1) The Board may
declare with regard to any customs-port, by notification in the official Gazette that, after
a date therein specified, no boat not duly licensed and registered shall be allowed to ply
as a cargo-boat for the landing and shipping of merchandise within the limits of such
port.
(2) In any port with regard to which such notification has been issued, the
Collector of Customs or other officer whom the Board appoints in this behalf, may,
subject to rules and on payment of such fees as the Board may, by notification in the
official Gazette, prescribe, issue licenses for and register cargo-boats, or cancel the
same.
69
THE CUSTOMS ACT,1969
72. Plying of ships of less than one hundred tons.- (1) Every boat belonging to a
Pakistani ship and every other vessel not exceeding one hundred tons, shall be marked
in such manner as may be prescribed by rules.
(2) Plying of all or any class or description of vessels of less than one
hundred tons, whether in sea or inland waters, may be prohibited or regulated or
restricted as to the purposes and limits of plying by rules.
3
[72A. Responsibilities of person in charge or master of a conveyance, agent and
owner of the conveyance.- The person in charge of the conveyance, master, agent for
conveyance and owner of the conveyance shall jointly and individually be responsible
to submit the following information to the Collector of Customs, namely:-
(b) the name and full address with telephone number of the person who
stuffed the goods in the container if he is other than the actual owner of
the goods;
(c) the name and full address with telephone number of the person who
issued a consignment note or the house bill of lading in case of a person
other than licensed by the customs as Customs agent; and
(d) full details and photo copies of corrigendum or instructions issued by the
owner of the goods or by the other persons for change in the name of
consignee or consignor or destination or regarding weight, value,
description and quantity of the goods loaded on the conveyance arriving
or leaving Pakistan;]
LEGAL REFERENCE
70
THE CUSTOMS ACT,1969
CHAPTER IX
75. Imported goods not to be unloaded unless entered in the import manifest.-
(1) No imported goods required to be shown in the import manifest shall, except with
the permission of the appropriate officer, be unloaded from any conveyance at any
customs-station unless they are specified in the import manifest or amended or
supplementary import manifest for being unloaded at that customs-station.
76. Procedure in respect of goods not unloaded by vessels within time allowed.-
(1) (a) If any goods imported by a vessel (except such as have been
shown in the import manifest as not to be unloaded) are not
unloaded within such period as is specified in the bill of lading or
if no period is so specified, within such number of working days,
not exceeding fifteen, after entry of the vessel as the Board may
from time to time by notification in the official Gazette appoint,
or
71
THE CUSTOMS ACT,1969
(2) The appropriate officer shall thereupon take charge of, and grant receipts
for, such goods; and if notice in writing has been given by the master of such vessel that
goods are to remain subject to a lien for freight, primage, general average, or other
charges of a stated amount, the appropriate officer shall hold such goods until he
receives notice in writing that the said charges have been paid.
77. Power to land small parcels and hold unclaimed parcels.- (1) At any time
after the arrival of any vessel, the appropriate officer may, with the consent of the
master of such vessel, cause any small package or parcel of goods to be carried to the
custom-house there to remain for entry in charge of the officers of customs, during the
remainder of the working days allowed under this Act, for the landing of such package
or parcel.
(2) Any agent so receiving such cargo or portion shall be bound to discharge
all claims for damage or short delivery which may be established in respect of the same
by the owner thereof, and shall be entitled to recover from such owner his charges for
service rendered, but not for commission or the like, where any agent for the unloading
72
THE CUSTOMS ACT,1969
of such cargo or portion has been previously appointed by the owner and such
appointment is unrevoked.
(3) The appropriate officer shall take charge of all goods discharged under
clause (a) of sub-section (1) and otherwise proceed in relation thereto as provided in
sections 76 and 82.
(a) filing a true declaration of goods, giving therein complete and correct
particulars of such goods, duly supported by commercial invoice, bill of
lading or airway bill, packing list or any other document required for
clearance of such goods in such form and manner as the Board may
prescribe;
25
[(aa) the documents mandatory for assessment of the goods, shall be uploaded
by the importer or his agent with the goods declaration, as may be
prescribed by the Board; and]
(b) assessing and paying his liability of duty, taxes and other charges
thereon, in case of a registered user of the Customs Computerized
System:
11
[Provided that if, in case of used goods, before filing of goods
declaration, the owner makes a request to an officer of customs not
below the rank of an Additional Collector that he is unable, for want of
full information, to make a correct and complete declaration of the
goods, then such officer subject to such conditions as he may deem fit,
may permit the owner to examine the goods and thereafter make entry of
such goods by filing a goods declaration after having assessed and paid
his liabilities of duties, taxes and other charges:]
Provided further that no goods declaration shall be filed prior to
ten days of the expected time of arrival of the vessel.]
20
[Explanation.- For the purposes of this clause, the assessment and paying of
duty, taxes and other charges in respect of transshipment shall be at the port of
destination.]
73
THE CUSTOMS ACT,1969
(2) An officer of Customs may examine any goods that he may deem
necessary at any time after the import of the goods into the country and may requisition
relevant documents, as and when and in the manner deemed appropriate, during or after
release of the goods by Customs;
(5) The Collector may, however, either condone the examination or defer
the examination of imported goods or class of goods and cause it to be performed at a
74
THE CUSTOMS ACT,1969
designated place as he deems fit and proper either on the request of the importer or
otherwise.]
4[80A. Omitted.]
22[80B. Application of risk management system.- For the purpose of enforcing
Customs Controls, risk management system shall be used in such manner as may be
prescribed by rules.]
Provided that the importer, save in the case of goods entered for warehousing,
pays such additional amount on the basis of provisional assessment or furnishes bank
guarantee 5a[or pay order] 15[Omitted] of a scheduled bank along with an indemnity
bond for the payment thereof as the said officer deems sufficient to meet the likely
differential between the final determination of duty 17[, taxes and other charges] over
the amount determined provisionally:
Provided further that there shall be no provisional assessment under this section
if no differential amount of duty and 18[taxes and other charges] is paid or secured
against bank guarantee 14[or pay order] 15[Omitted].
5b
[(2) Where any goods are allowed to be cleared or delivered on the basis of
such provisional determination, the amount of duty, taxes and charges correctly payable
on those goods shall be determined within six months of the date of provisional
determination:
Provided that the Collector of Customs or, as the case may be, Director of
Valuation, may in circumstances of exceptional nature and after recording such
circumstances, extend the period for final determination which shall in no case exceed
ninety days12[:]
12
[Provided further that any period, during which the proceedings are adjourned
on account of a stay order or for want of clarification from the Board or the time taken
through adjournment by the importer, shall be excluded for the computation of
aforesaid periods.]
75
THE CUSTOMS ACT,1969
(4). If the final determination is not made with the period specified in sub-
section (2), the provisional determination shall, in the absence of any new evidence, be
deemed to be the final determination.
13
[(5) On completion of final determination under sub-section (3) or (4), the
appropriate officer shall issue an order for adjustment, refund or recovery of amount
determined, as the case may be.]
Provided that-
(a) animals and perishable and hazardous goods may, with the permission of
the appropriate officer, be sold or destroyed at any time;
(c) in cases where goods are sold pending adjudication, appeal or decision
of the court, the proceeds of sale shall be kept in deposit and if on such
adjudication, or as the case may be, in such appeal or the decision of the
76
THE CUSTOMS ACT,1969
court, the goods sold are found not to have been liable to confiscation,
the entire sale proceeds, after necessary deduction of duties, taxes
transportation and other charges or duties as provided in section 201,
shall be handed over to the owner:
27
[Provided that Collector of Customs may direct the importer or in case
importer is not traceable, the shipping line to re-export out of Pakistan any goods,
banned or restricted through a notification issue by the Federal Government, if the same
are not cleared or auctioned within sixty days of the date of their arrival:]
Provided further that where Customs removes such goods from the premises of
the custodian for disposal, the charges due to the custodian shall be paid subsequently
from the sale proceeds of the goods in the manner as provided under section 201:
Provided also that nothing in this section shall authorize removal for home
consumption of any dutiable goods without payment of customs duties thereon.]
10
[82A. Omitted.
LEGAL REFERENCE
1. By the Finance Act, 2006 sub-section (1) of section 79 was substituted. At the time of
substitution, the section (1) of section 79 was as under:-
“(1) The owner of any imported goods shall make entry of such goods for home consumption or
warehousing or for any other approved purpose by filing to the Customs a goods declaration
containing correct and complete particulars of the goods and after having assessed, and, in case
of the Customs Computerized System, paying his liability of duty, taxes and other charges
thereon in such form and manner, as the Board may prescribe:
Provided that if, before filing a goods declaration to Customs, the owner makes a
written request to the Collector of Customs or an officer designated that he is unable, for want of
full information, to make a correct and complete declaration of any goods, then the Collector or
the officer so designated, subject to such conditions as he may deem fit, may permit the owner to
examine the goods and thereafter make entry of such goods by filing a goods declaration after
having assessed and paid his liabilities of duties, taxes and other charges:
Provided further that no goods declaration shall be filed prior to ten days of the
expected time of arrival of the vessel.”
2. Inserted by FA, 2003 and omitted by FA 2005.
3. Substituted by Finance Act, 2005.
4. Inserted by FA, 2003 and omitted by FA, 2005.
5. Substituted by the Finance Act, 2005.
5a. Inserted by the Finance Act, 2007.
5b Substituted by the Finance Act, 2007. Before substitution it was as under:-
“(2) Where any goods are allowed to be cleared or delivered on the basis of such
provisional determination, the amount of duty, taxes and charges correctly payable on those
goods shall be determined within nine months of the date of provisional determination:
77
THE CUSTOMS ACT,1969
Provided that the Collector of Customs may, in circumstances of exceptional
nature and after recording such circumstances, extend the period for final determination by not
more than ninety days.”
6. Inserted by FA, 2003 and omitted by FA, 2005.
7. Substituted by Finance Act,,2005.
8. By the Finance Act, 2006, substituted the words “twenty days” with “one months”.
9. By the Finance Act, 2006, substituted the words ”ten” with “fifteen”.
10. Inserted by FA, 1996 and omitted by FA, 2005 At that time section 82A was as under:-.
“82A. Procedure in case of goods not cleared or warehoused or transshipped or exported
or removed from the port within one month after unloading through the Customs
Computerized System.- Subject to the provisions of section 155A, at customs-stations with
an operational Customs Computerized System, if any goods are not cleared for home
consumption or warehoused or transshipped or are not loaded on the conveyance for export or
removed from the port area within one month of their arrival at a customs-station or within such
extended period as the appropriate officer may allow, such goods may, after the due notice given
to the owner, if his address could be ascertained, or after due notice to the carrier, shipping agent,
custodian of the goods, as the case may be, if his address could not be ascertained, may be sold in
auction or taken into custody by Customs and removed from the port to a Customs auction
warehouse for auction under the orders of the appropriate officer notwithstanding the fact that
adjudication of the case under section 179, or an appeal under section 193, or 196, or a
proceeding in any court of law in Pakistan, is pending:
Provided that-
(a) animals, perishable and hazardous goods may, with the permission of the appropriate
officer, be sold at any time;
(b) arms and ammunition or military stores may be sold or otherwise disposed of at such
time and place and in such manner as the Board may, with the approval of the Federal
Government, direct;
(c) In cases where goods are sold pending any adjudication, appeal or decision of the
court, the proceeds of sale shall be kept in deposit and, if on such adjudication (or, as
the case may be, in such appeal or the decision of the court) the thing sold is found not
to have been liable to confiscation, the entire sale proceeds, after necessary deduction
of duties, taxes or dues as provided in section 201, shall be handed over to the owner:
Provided further that all auctions under this section shall be governed by the auction
rules as notified by the Board and where Customs removes such goods from the
premises of the custodian for disposal, the charges due to the custodian shall be paid
subsequently from the sale proceeds of the goods in the manner as prescribed under
section 201:
Provided further that nothing in this section shall authorize removal for home consumption of
any dutiable goods without payment of customs-duties thereon;”
11. Substituted by Finance Act,2010. At the time of substitution the proviso was as under:-
“Provided that if, before filing a goods declaration, the owner makes a request to an officer
of customs not below the rank of an Assistant Collector that he is unable, for want of full
information, to make a correct and complete declaration of the goods, then such officer, subject
to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter
make entry of such goods by filing a goods declaration after having assessed and paid his
liabilities of duties, taxes and other charges”.
12. Added by the Finance Act, 2010.
13. Added by the Finance Act, 2010
14. Added by the Finance Act, 2012.
15. The word “ or a post-dated cheque” omitted by Finance Act, 2013
16. Added by Finance Act, 2014
78
THE CUSTOMS ACT,1969
17. Inserted by Finance Act, 2014
18. Substituted for the word “tax’ by Finance Act, 2014
19. Inserted by Finance Act, 2015
20. Added the Finance Act, 2015
21. Substituted by Finance Act, 2019 . At the time of substitution the word was “fifteen”
22. Inserted by Finance Act,2019
23. Substituted by Finance Act, 2019. At the time of substitution the words was”
(1) “twenty”
(2) “ten”
79
THE CUSTOMS ACT,1969
CHAPTER X
(2) Where the owner fails to pay import duty and other charges within
3
[ten] days from the date on which the same has been assessed under sections 80,
5
[Omitted] or 81, he shall be liable to pay surcharge at the rate of 5[KIBOR plus three
per cent] on import duty and other charges payable on such goods.]
4
[83A. [ Omitted]
7
[83B. Provisional release of imported goods.- Where any offence is detected in
respect of imported goods which are not liable to 8[outright] confiscation or needed for
evidence at a later stage, the Collector of Customs may, on written request of owner of
the goods, allow release of the same on payment of duty, taxes or other charges and
furnishing bank guarantee or pay order against the amount of any penalty or fine which
may be imposed on such goods.]
LEGAL REFERENCE
1. Re-numbered as sub-section (1) by the Finance Act, 1993 (X of 1993), S.4(iii), page 121 and
substituted by the Finance Act, 2003 (I of 2003), S.5(19), page 27. At the time of substitution
section 83 was as under:-
“83. Clearance for home-consumption.- 1a[(1) When the owner of any goods entered for
home-consumption and assessed under section 80 has paid the import duty and other charges, if
any in respect of the same, the appropriate officer, if he is satisfied that the import of the goods is
not prohibited or in breach of any restrictions or conditions apply to the import of such goods,
may make an order for the clearance of the same.
1b[(2) Where the owner fails to pay import duty and other charges under sub-
section (1) within thirty days from the date on which the bill of entry is returned to him for
payment of duty, he shall be liable to pay surcharge at the rate of fourteen percent per annum on
import duty and other charges payable on such goods:
80
THE CUSTOMS ACT,1969
Provided that where the bill of entry is returned for payment of duty before the
commencing day of the Finance Act, 1993, and the owner has not paid such duty before such
commencing day, the date of return of such bill of entry shall be such commencing day.]
2. Figures, letters and commas “79A, 80A” omitted vide Finance Act, 2005
4. Inserted by the Finance Act, 2000 (XXI of 2000),and. By the Finance Act, 2006 section 83A
was omitted At that time section 83A was as under:-.
“83.A Levy of additional duty.- Notwithstanding anything contained in this Act and
without prejudice to any other action that may be taken under this Act, if any person fails to pay
the dues recoverable under this Act within the prescribed time, he shall, in addition to the dues
payable, be liable to pay additional duty at the rate of one and a half percent per month.
Explanation: For the purpose of calculating additional duty, the period of default shall be
reckoned from the day following the due date on which the dues were required to be paid to the
day preceding the date on which the same are actually paid.”
5. The words “fourteen per cent” substituted with the words “KIBOR plus three per cent” by
Finance Act,2009.
6. The figure ‘80A’ omitted by Finance Act, 2013
7. Inserted by Finance Act, 2018
8. Inserted by Finance Act, 2021
81
THE CUSTOMS ACT,1969
CHAPTER XI
WAREHOUSING
84. Application to warehouse.- When any dutiable goods have been entered for
warehousing and assessed under section 1[*****] 80 1[*****] or 81] the owner of such
goods may apply for leave to deposit the same in any warehouse appointed or licensed
under this Act2[:]
3
[Provided that the Collector of Customs, for reasons to be recorded in writing,
may disallow the warehousing of goods or any class of goods or goods belonging to a
particular importer4[:]
5
[Provided further that, at customs-stations where the Customs Computerized
System is operational the system may allow removal to warehouse through system
generated clearance documents.]
(a) to observe all the provisions of this Act and the rules in respect of
such goods;
(2) Every such post-dated cheque shall be equivalent to the duties and taxes
leviable on the goods or por5tion of the goods of one conveyance only.]
82
THE CUSTOMS ACT,1969
(2) A pass shall be sent with the goods specifying the name of the bonder
and the name or number of the importing conveyance, the marks, numbers and contents
of each package, and the warehouse or place in the warehouse wherein they are to be
deposited.
88. Receipt of goods at warehouse.- (1) On receipt of the goods, the pass shall be
examined by the warehouse-keeper, and shall be returned to the appropriate officer.
(2) No package, butt, cask or other container shall be admitted into any
warehouse unless it bears the marks and numbers specified in, and otherwise
corresponds with, the pass for its admission.
(3) If the goods be found to correspond with the pass, the warehouse-keeper
shall certify to that effect on the pass, and the warehousing of such goods shall be
deemed to have been completed.
(4) If the goods do not so correspond, the fact shall be reported by the
warehouse-keeper for the orders of the appropriate officer, and the goods shall either be
returned to the custom-house in charge of an officer of customs or kept in deposit
pending such orders as the warehouse-keeper deems most convenient.
[(5) If the quantity or value of any goods has been incorrectly stated in the
goods declaration, due to inadvertence or bona fide err or, the Collector of Customs
may, for reasons to be recorded in writing, direct the correction of the said error.]
89. Goods how warehoused.- Except as provided in section 94, all goods shall be
warehoused in the packages, butts, casks or other containers in which they have been
imported.
90. Warrant to be given when goods are warehoused.- (1) Whenever any goods
are lodged in a public warehouse or a licensed private warehouse, the warehouse-keeper
shall deliver a warrant signed by him as such to the person lodging the goods.
(2) Such warrant shall be in such form as the Board may from time to time
prescribe, and shall be transferable by endorsement; and the endorsee shall be entitled
to receive the goods specified in such warrant on the same terms as those on which the
person who originally lodged the goods would have been entitled to receive the same
38
[;
83
THE CUSTOMS ACT,1969
(3) The Board may, by notification in the official Gazette, exempt any class
of goods from the operation of this section.
38[(4)The Board may make rules to regulate the transfer of goods in the
manner as mentioned in sub-section (2)]
91. Access of customs officer to 8[*] warehouse.- The appropriate officer shall
have access to any 8[*] warehouse licensed under this Act.
(2) When any goods have been so sealed and marked after examination,
they shall not be again opened without the permission of the appropriate officer; and,
when any such goods have been opened with such permission, the packages shall, if he
thinks fit, be again sealed or marked.
93. Access of owner to warehoused goods.- (1) Any owner of goods lodged in a
warehouse shall, at any time within the hours of business, have access to his goods in
the presence of an officer of customs, and an officer of customs shall, upon application
for the purpose being made in writing to the appropriate officer, be deputed to
accompany such owner.
94. Owner’s power to deal with warehoused goods.- (1) With the sanction of the
appropriate officer and on payment of such fees as may be prescribed by rules, the
owner of any goods may, either before or after warehousing the same,-
(b) sort the goods or change their containers for the purpose of preservation,
sale, export or disposal of the goods;
(c) deal with the goods and their containers in such manner as may be
necessary to prevent loss or deterioration or damage to the goods;
84
THE CUSTOMS ACT,1969
(e) take such samples of goods as may be allowed by the appropriate officer
with or without entry for home-consumption, and with or without
payment of duty, except such as may eventually become payable on a
deficiency of the original quantity.
(2) After any such goods have been so separated and repacked in proper or
approved packages, the appropriate officer may, at the request of the owner of such
goods, cause or permit any refuse, damaged or surplus goods remaining after such
separation or repacking (or, at the like request, any goods which may not be worth the
duty) to be destroyed, and may remit the duty payable thereon.
(2) Where in the course of any such operation or process there is any waste
or refuse the following provisions shall apply, namely:-
(a) If the whole or any part of the goods produced by such operation
or process are exported, no duty shall be charged on the quantity
of the warehoused goods wasted or turned into refuse in the
course of the operation or processing carried on in relation to the
goods exported:
(b) If the whole or any part of the goods produced by such operation
or process are cleared from the warehouse for home-
consumption, duty shall be charged on the quantity of the
warehoused goods wasted or turned into refuse in the course of
the operation or processing carried on in relation to the goods
cleared for home-consumption.
96. Payment of rent and warehouse dues.- (1) If goods be lodged in a public
warehouse, the owner shall 9[unless exempted by an order of the Collector or an officer
not below the rank of 10[Assistant Collector 36[Omitted] authorized by him,] pay
monthly rent and warehouse-dues at such rates as the Collector of Customs may fix.
(2) A table of the rates of rent and warehouse-dues so fixed shall be placed
in a conspicuous part of such warehouse.
85
THE CUSTOMS ACT,1969
(3) If any demand for such rent or dues is not discharged within ten days of
its presentation, the appropriate officer may, in the discharge of such demand (any
transfer or assignment of the goods notwithstanding) cause to be sold, after due notice
in the official Gazette, such sufficient portion of the goods as he may select.
(4) The proceeds of such sale shall be adjusted in accordance with section
201.
97. Goods not to be taken out of warehouse except as provided by this Act.- No
warehoused goods shall be taken out of any warehouse, except on clearance for home-
consumption or export, or for removal to another warehouse, or as otherwise provided
in this Act.
11
[98. Period for which goods may remain warehoused.- 12{(1) Warehoused goods,
other than perishable goods notified by the 11a[Board] , may remain in the warehouse
for a period of 13[six months] following the date of their admission into the warehouse
and perishable goods so notified may remain in the warehouse for a period of 39[one
month], following the said date:
Provided that the said period may, in case of non-perishable goods, be extended,
on sufficient cause being shown by the owner of the warehoused goods and subject to
the condition that he pays in advance surcharge on the duty and taxes involved at
14
[one] per cent per month for the extended period-
45
[(a) by the Collector of Customs, for a period not exceeding six months; and]
41
(b) by the Chief Collector of Customs for such period as he may deem fit;]
42
(c)] [Omitted] .
subject to the condition that the extension in case of perishable goods shall be granted
only if the goods are fit for human consumption.}
86
THE CUSTOMS ACT,1969
Provided that such period shall not be less than one month.
(4) When the license of any warehouse is cancelled, the owner of any goods
warehoused therein shall, within ten days of the date on which notice of such
cancellation is given, or within such extended period as the appropriate officer may
allow, remove the goods from that warehouse to another warehouse or clear them for
home-consumption or exportation.]
99. Power to remove goods from one warehouse to another in the same
customs-station.- (1) Any owner 18[or a manufacturer-cum-exporter duly authorized
by such owner in respect] of goods warehoused under this Act may, within the period of
their warehousing under section 98, and with the permission of the Collector of
Customs, on such conditions and after giving such security, if any, as the Collector
directs, remove goods from one warehouse to another warehouse in the same
warehousing station.
100. Power to remove goods from one warehousing station to another.- (1) Any
owner 18[or a manufacturer-cum-exporter duly authorized by such owner in respect] of
goods warehoused at any warehousing station may, within the period of their
warehousing under section 98, remove the same for the purpose of warehousing them
at any other warehousing station.
(2) The person requiring the removal shall before such removal enter into a
bond, with one sufficient surety, in a sum equal at least to the duty chargeable on such
87
THE CUSTOMS ACT,1969
goods, for the due arrival and re-warehousing thereof at the customs-station of
destination, within such time, as the Collector of Customs directs.
(3) Such bond may be taken by the appropriate officer either at the customs-
station of removal or at the customs-station of destination as best suits the convenience
of the owner.
102. Remover may enter into a general bond.- The Collector of Customs may
permit any person desirous of removing warehoused goods to enter into a general bond,
with such sureties, in such amount and under such conditions as the Collector approves,
for the removal, from time to time, of any goods from one warehouse to another, either
in the same or in a different warehousing station and for the due arrival and re-
warehousing of such goods at the destination within such time as the Collector directs.
(a) the duty assessed on such goods under the provisions of this Act; and
19
(b) all rent, penalties, [surcharge] and other charges payable in respect of
such goods 20[:]
21
[Provided that in case of manufacturer-cum-exporter duly qualified for
claiming exemption under any notification issued under this Act, the ex-bonding of
goods under this section shall be without payment of duties and taxes.]
88
THE CUSTOMS ACT,1969
105. Clearance of warehoused goods for export.- Any owner of warehoused good
may, at any time within the period of their warehousing under section 98, clear such
goods for export out of Pakistan on payment of all rent, penalties, 22[surcharge] and
other charges payable as aforesaid but without paying any import duty thereon:
107. Application for clearance of goods.- (1) An application to clear goods from
any warehouse for home-consumption or for export shall be made in such form as the
Board may prescribe.
109. Reassessment on alteration of duty.- If any goods have been entered for
warehousing and assessed under section 26[*****] 80 27[*****] or 81] but the duty
leviable thereon is subsequently altered, such goods shall be reassessed on the basis of
the altered duty and a new bond shall be executed by the owner in accordance with the
provisions of section 86 to replace the bond originally executed by him.
110. Allowance in case of volatile goods.- When any warehoused goods of such
class or description as the Board having regard to the volatility of such goods and the
manner of their storage may, by notification in the official Gazette, specify are, at the
time of delivery from a warehouse, found to be deficient in quantity and the Collector
89
THE CUSTOMS ACT,1969
of Customs is satisfied that such deficiency is on account of natural loss, no duty shall
be charged on such deficiency.
(2) In case the post-dated cheque is not enchased for any reason, the
Collector of customs or any officer designated by him may detain the owner’s goods
whether lying in any warehouse or freshly imported for public auction and adjustment
of sale proceeds against the amount of duties, taxes surcharges, rents and penalties, etc.,
which may have become payable on goods warehoused but not cleared within the
specified period and the surplus amount, if any, shall be disposed of in the manner
provided in section 201.]
113. Noting removal of goods.- (1) When any warehoused goods are taken out of
any warehouse, the appropriate officer shall cause the fact to be noted on the back of
the bond.
(2) Every note so made shall specify the quantity and description of such
goods, the purposes for which they have been removed, the date of removal, the name
of the person removing them, the number and date of the 30[goods declaration] under
90
THE CUSTOMS ACT,1969
30A
which they have been taken away, if removed for exportation, or [***] for home-
consumption and the amount of duty paid, if any 31[:]
32
[Provided that at customs-station where the Customs Computerized System is
operational, the requirement of this section shall be completed in accordance with that
system.]
114. Register of bonds.- (1) A register shall be kept of all bonds entered into for
customs-duties on warehoused goods, and entry shall be made in such register of all
particulars required by section 113 to be specified.
(2) When such register shows that the whole of the goods covered by any
bond have been cleared for home-consumption or export, or otherwise duly accounted
for, and when all amounts due on account of such goods have been paid, the appropriate
officer shall cancel such bond as discharged in full, and shall on demand deliver the
cancelled bond to the person who executed it or who is entitled to receive it.
Provided that no owner of goods shall be entitled to claim from the appropriate
officer or from any keeper of a public warehouse, compensation for any loss or damage
occurring to such goods while they are being passed into or out of such warehouse, or
while they remain therein, unless it be proved that such loss or damage was occasioned
by the willful act or neglect of the warehouse-keeper or of an officer of customs.
117. Locking of warehouses.- (1) Every public warehouse shall be under the lock
and key of both the warehouse-keeper appointed by the Collector of Customs, and the
appropriate officer.
91
THE CUSTOMS ACT,1969
(2) Every private warehouse shall be under the lock and key of both the
licensee and the appropriate officer.
118. Power to decide where goods may be deposited in public warehouse, and on
what terms.- The Collector of Customs may from time to time determine in what
division of any public warehouse 34[or private warehouse], and in what manner, and on
what terms, any goods may be deposited, and what sort of goods may be deposited in
any such warehouse.
LEGAL REFERENCE
1. Substituted for the figure “80” by Finance Act,2003 (I of 2003), S.5(21)(a), page 28 and figures,
letters and commas”79A, 80A” omitted vide Finance Act, 2005.
2. Substituted for the full stop by Finance Act,1990 (VII of 1990),S.6(5), page 35.
3. Added by the Finance Act,1990(VII of 1990), A.6(5), page 35.
4. Substituted for the full stop by Finance Act,2003 (I of 2003), S.5(21)(b) page 29.
5. Added by Finance Act,2003 (I of 2003), S.5(21)(b), page 29.
6. Substituted by the Finance Act, 2005. At that time section 86 was as under:-
“86. Warehousing bond.- (1) When any such application has been made in respect of any
goods, the owner of the goods to which it relates shall execute a bond, binding himself in a
penalty of twice the amount of the duty assessed under section 80 or section 81 or reassessed
under section 109 on such goods,-
(a) to observe all the provisions of this Act and the rules in respect of such goods;
(b) to pay on or before a date specified in a notice of demand all duties, rent and charges
payable in respect of such goods together with surcharge on the same from the date so
specified at the rate of two per cent per month or such other rate as is for the time being
fixed by the Board; and
(e) to discharge all penalties incurred for violation of the provisions of this Act and the
rules in respect of such goods.
(2) Every such bond shall be in such form as is from time to time prescribed by the Board,
and shall relate to the goods or portion of the goods of one conveyance only.
(3) Notwithstanding anything in sub-section (2), for the purposes of sub-section (1), the
Collector of Customs may permit any importer to enter into a general bond in such amount and
subject to such conditions, limitations or restrictions as the Collector of Customs may determine
in respect of the warehousing of goods to be imported by shall continue in force notwithstanding
the transfer of the goods to any other person or the removal of the goods to another warehouse or
warehousing station:
Provided that, where the whole of the goods or any part thereof are transferred to another person,
the appropriate officer may accept a fresh bond from the transferee in a sum equal to twice the
amount of duty assessed on the goods transferred and thereupon the bond executed by the
transferer shall be deemed to be discharged to the extent to which the fresh bond has been
executed by the transferee.
94
THE CUSTOMS ACT,1969
CHAPTER XII
TRANSSHIPMENT
1
[120. Chapter not to apply to postal articles.- The provisions of this chapter shall
not apply to goods imported by post.]
2
[121. Transshipment of goods without payment of duty.- (1) Subject to the
provisions of section 15 and the rules, the appropriate officer may, on application by the
owner of any goods imported at any customs-station and specially and distinctly
manifested at the time of importation as for transshipment to some other customs-
station or foreign destination, grant leave to transship the same without payment of
duty, if any, chargeable on such goods with or without any security or bond for the due
arrival and entry of the goods at the customs-station of destination:
7
[Provided that at customs-station where the Custom Computerized System is
operational, the system may automatically authorize transshipment to other
customs-station subject to risk selectivity criteria.]
(2) The Board may, subject to rules and such conditions as it may deem fit
to impose, authorize certain carriers to transport goods under the multimodal, scheme.
Goods transported under the multimodal scheme shall be specially and distinctly
manifested at the time of importation as for transshipment to some other customs-
station or foreign destination and shall not -
(3) The Board may, subject to such conditions as it may deem fit, grant
license to any carrier to carry goods under the multimodal scheme.]
6
[123. Entry, etc., of transshipped goods.- (1) All goods transshipped under sub-
section (2) of section 121 to any customs-station shall, on their arrival at such customs-
station, be entered in the same manner as goods on their first importation and shall be
dealt with likewise.
(2) All goods being transshipped under sub-section (1) of section 121 from a
customs-station of first entry into the country, where the Customs Computerized
System is operational and the goods are determined to be high risk by the risk
management system shall be dealt with under rules on the subject.]
8
[Explanation.- For the purpose of transshipment of LCL goods, the customs-
station of first entry shall be the customs-station where the goods are de-consolidated.]
125. Levy of transshipment fees.- Subject to the rules, a transshipment fee on any
goods or class of goods transshipped under this Act may be levied at such rates,
according to weight, measurement, quantity, number, bale, package or container, as the
Board may, by notification in the official Gazette, prescribe for any customs-station or
class of customs-stations.
LEGAL REFERENCE
1. Section 120 substituted by the Finance Act, 1979 (XXX of 1979), S.6(7), page 188. At the time of
substitution this was as under:-
“120. Chapter not to apply to baggage or postal articles.- The provision of this Chapter
shall not apply to (a) baggage or (b) goods imported by post.”.
2. Substituted by the Finance Act, 2003 (I of 2003), by the Finance Act, 2003 (I of 2003),
S.5(25)(a), page 30. At the time of substitution section 121 was as under:-
“121. Transshipment of goods without payment of duty.- Subject to the provisions of
section 15 and the rules, the appropriate officer may, on application by the owner of any goods
imported at any customs-station and specially and distinctly manifested at the time of importation
as for transshipment to some other customs-station or foreign destination, grant leave to transship
the same without payment of duty, if any, chargeable on such goods at the customs-station of
transshipment and, in the case of goods to be transshipped to some other customs-station, with or
without any security or bond for the due arrival and entry of the goods thereat.”.
3. Substituted for the words and commas “shall, in every case, “by the Finance Act, 2003 (I of
2003), by the Finance Act, 2003 (I of 2003), S.5(25),(a) page 30.
4. Substituted full stop by the Finance Act, 2003 (I of 2003), S.5(25)(b), page 30.
5. Added by the Finance Act, 2003 ((I of 2003), S.5(25)(b), page 30.
6. Substituted by the Finance Act, 2003 (I of 2003), S.5(26), page 30. At the time of substitution
section 123 was as under:-
96
THE CUSTOMS ACT,1969
“123, Entry, etc., of transshipped goods.- All goods transshipped under section 121 to any
customs-station shall, on their arrival at such customs-station, be entered in the same manner as
goods on their first importation and shall be dealt with likewise.”.
7. Added by Finance Act, 2015
8. Added by Finance Act, 2015
97
THE CUSTOMS ACT,1969
CHAPTER XIII
TRANSIT TRADE
126. Chapter not to apply to baggage and postal articles.- The provisions of this
Chapter shall not apply to (a) baggage, and (b) goods imported by post.
127. Transit of goods in the same conveyance.- (1) Subject to the provisions of
section 15 and the rules any goods imported in a conveyance and mentioned in the
import manifest as for transit in the same conveyance to customs-station in Pakistan or
to any destination outside Pakistan may be allowed to be so transited without payment
of duty, if any, leviable on such goods at the customs-station of transit.
129. Transit of goods across Pakistan to a foreign territory.- Where any goods
are entered for transit across Pakistan to a destination outside Pakistan, the appropriate
officer may, subject to the provisions of the rules, allow the goods to be so transited
without payment of the duties which would otherwise by chargeable on such goods1[:]
2
[Provided that the Federal Government may, by notification in the official
Gazette, prohibit the bringing into Pakistan by sea, land or air in transit to a foreign
territory any goods or class of goods.]
3
[129A. Levy of transit fee.- A transit fee may be levied on any goods or class of
goods in transit across Pakistan to a foreign territory at such rates as the Board may, by
notification in the official Gazette, prescribe.] .
LEGAL REFERENCE
1. Substituted full stop by the Finance Act, 1996 (IX of 1996), S.4(4), page 480.
2. Added by the Finance Act, 1996 (IX of 1996), S.4(4), page 470.
3. Added by the Finance Act,2011.
98
THE CUSTOMS ACT,1969
CHAPTER XIV
(b) the claim of duty drawback, if any, has been calculated and
reflected in the declaration filed for export through Customs
Computerized System;
(c) Customs has, on the receipt of goods declaration under clause (a),
satisfied itself regarding the correctness of the particulars of
export, including declaration, assessment, and payment of duty,
taxes and other charges and verified the admissibility of the duty
drawback claimed as specified in clause (b); and
(2) If any goods or class of goods imported and lying within the port area,
are intended to be exported by its owner, the Collector may allow the export subject to
the conditions as the Board may, from time to time, notify:
Provided that the Board may in the case of any customs station or wharf, by
notification in the official Gazette, and subject to such restrictions and conditions, if
any, as it thinks fit, exempt any specified goods or class of goods or any specified
person or class of persons, from all or any of the provisions of this section.
Provided further that the Collector, 8[….] for reasons to be recorded in writing,
may cause the examination of goods or any class of goods or goods belonging to a
99
THE CUSTOMS ACT,1969
132. Bond required in certain cases before exportation.- Before any warehoused
goods subject to excise duties, or goods entitled to drawback or repayment of customs-
duties on exportations or goods exportable only under particular rules or restrictions,
are permitted to be exported, the owner shall, if required so to do, give security by bond
in such sum not exceeding twice the duty leviable on such goods as the appropriate
officer directs, with one sufficient surety, that such goods shall be exported and landed
at the place for which they are entered outwards or shall be otherwise accounted for to
the satisfaction of such officer.
134. Notice of non-loading or relanding and return of duty thereon.- (1) If any
goods mentioned in a 4&5[goods declaration] or manifest be not loaded or be
loaded and afterwards relanded, the owner shall before the expiration of fifteen clear
working days after the conveyance on which such goods were intended to be loaded or
from which they were relanded has left the customs-station, give information of such
short-loading or relanding to the appropriate officer save where the latter has
occasioned the short-loading or relanding.
(2) Upon an application being made to the appropriate officer within one
year of such short-loading or relanding, any duty levied upon goods not loaded or upon
goods loaded and afterwards relanded shall be refunded to the person on whose behalf
such duty was paid:
re-export, may, with the consent of the person-in-charge of the conveyance, apply to the
appropriate officer in that behalf.
(2) The appropriate officer, if he grants the application, shall thereupon send
an officer of customs to watch the conveyance and to take charge of such goods during
such relanding or transshipment.
(4) All expenses attending such custody shall be borne by the owner.
136. Conveyance returning to customs-station may enter and land goods.- (1) In
either of the cases mentioned in section 135, the person-in-charge of the conveyance
may enter such conveyance inwards and any owner of goods thereon may, with the
consent of the person-in-charge of the conveyance, land the same under the provisions
of this Act and the rules.
(2) In every such case, any export duty paid shall be refunded on an
application made by the owner of such goods within one year of their landing and any
amount paid to the owner as drawback or repayment of duty(whether of customs,
excise or any other tax) shall be recovered from him or adjusted against the amount
refundable.
137. Landing of goods during repairs.- (1) The appropriate officer may, on
application by the person-in-charge of a conveyance which is obliged before
completing her journey or voyage to put into any customs-station for repairs, permit
him to land the goods or any portion thereof, and to place it in the custody of an officer
of customs during such repairs, and to load and export the same free of duty.
(2) All expenses attending such custody shall be borne by the person-in-
charge of the conveyance.
138. Frustrated cargo how dealt with.- (1) Where any goods are brought into a
customs-station by reason of inadvertence, misdirection or untraceability of the
consignee, 7[or where consignee has dishonored his commitments] 6[an officer of
Customs not below the rank of Additional Collector of Customs] may, on application
by the person-in-charge of the conveyance which brought such goods or of the
consignor of such goods and subject to rules, allow export of such goods without
payment of any duties (whether of import or export) chargeable thereon, provided that
such goods have remained and are exported under the custody of an officer of customs.
(2) All expenses attending to such custody shall be borne by the applicant.
101
THE CUSTOMS ACT,1969
LEGAL REFERENCE
1. Substituted by Finance Act,2005. At that time section 131 was as under:-
“131. Clearance for exportation.- No goods shall be loaded for exportation until-
(a) in the case of goods other than passenger’s baggage and mail bag-
(i) the owner has delivered to the appropriate officer a bill of export 1[or goods
declaration] for such goods, in such form and manner and containing such particulars
as may be prescribed by rules;
(ii) such owner has paid the duties payable on such goods; such bill 2[or
declaration] has been passed by the appropriate officer; and
(b) in the case of passenger’s baggage or mail bags, the appropriate officer has permitted
them to be exported:
Provided that the Board may in the case of any customs-station or wharf, by
notification in the official Gazette, and subject to such restrictions and conditions, if
any, as it thinks fit, exempt any specified goods or class of goods or any specified
person or class of persons, from all or any of the provisions of this section.
Provided further that the Collector for reasons to be recorded in writing may cause
the examination of goods or any class of goods or good belonging to a particular
exporter or class of exporters at a designated place as he deems fit and proper.”
2. Inserted by the Finance Act, 2003 and omitted by the Finance Act, 2005. At that time section
131A was as under:-
“131A. Clearance for exportation through the Customs Computerized System.- Subject to
the provisions of section 155A, for the purposes of the Customs Computerized System, no goods
shall be loaded for exportation until-
(a) the owner of any goods to be exported has made a declaration in such form and manner
as prescribed by the Board, by filing a goods declaration to Customs containing correct and
complete particulars of his goods, and assessed and paid his liability of duty, taxes and other
charges and having reflected his claim of duty draw back if any;
(b) Customs has, on the receipt of goods declaration under clause (a) through the Customs
Computerized System, satisfied itself regarding the correctness of the particulars of export,
including declaration, assessment, and payment of duty, taxes and other charges and verified the
admissibility of the duty draw back claimed; and
(c) Goods have been cleared for export through the Customs Computerized System:
Provided that the Board may in the case of any customs-station or wharf, by
notification in the official Gazette and subject to such restrictions and conditions, if any, as it
thinks fit, exempt any specified goods or class of goods or any specified person or class of
persons, from all or any of the provisions of this section.”
3. By the Finance Act, 2006, the words “bill of export” were substituted.
4. Inserted by the Finance Act, 2003 (I of 2003), S.5(27), page 31
5.. By the Finance Act, 2006, the words” bill of export or” were omitted.
6. Substituted for the words “the Collector of Customs” by Finance Act, 2005..
7. Inserted by Finance Act, 2018
8. By the Finance Act, 2021, the words “where Customs Computerized System has not been
introduced” were omitted
102
THE CUSTOMS ACT,1969
CHAPTER XV
140. Determination of rate of duty in respect of baggage.- The rate of duty if any,
applicable to baggage shall be the rate in force on the date on which a declaration is
made in respect of such baggage under section 139 3[:]
4
[Provided that in the case of goods cleared as mis-handled baggage or un-
accompanied baggage, the rate of duty shall be the rate in force on the date on which a
declaration for clearance of such goods is presented before the appropriate officer after
landing of the goods.]
141. Bona fide baggage exempt from duty.- The appropriate officer may, subject
to the limitations, conditions and restrictions specified in the rules, pass free of duty any
article in the baggage of a passenger or a member of the crew in respect of which the
said officer is satisfied that it is bona fide meant for the use of such passenger or for
making gift.
respect of which a true declaration has been made under section 139, 5[and about which
the appropriate officer is satisfied that these were not imported with the intention of
consumption in Pakistan, he] may, at the request of the passenger, detain such article
for the purpose of being returned to him on his leaving Pakistan.
145. Rate of duty in respect of goods imported or exported by post.- (1) The rate
of duty, if any, applicable to any goods imported by post shall be the rate in force on the
date on which the postal authorities present to the appropriate officer the declaration or
label referred to in section 144 for the purpose of assessing the duty thereon.
(2) The rate of duty, if any, applicable to any goods exported by post shall
be the rate in force on the date on which the exporter delivers such goods to the postal
authorities for exportation.
LEGAL REFERENCS
1. Substituted for the full stop by the Finance Act, 2004 (II of 2004), S.3(13), page 16.
2. Added by the Finance Act, 2004 (II of 20040, S.3(13), page 16.
3. Substituted full stop by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60.
4. Added by the Finance Ordinance, 1982 (XII of 1982), S.6(7), page 60.
5. Substituted for the comma and words “,the appropriate officer” by the Finance Ordinance, 1982
(XII of 1982), S.6(8), page 60.
6. As amended by Act, No.XVII of 2020 (30th March)
7. Substituted /inserted by Finance Act, 2020(June)
104
THE CUSTOMS ACT,1969
CHAPTER XVI
146. Chapter not to apply to baggage.- The provisions of this Chapter shall not
apply to baggage.
147. Entry of coastal goods.- (1) The consignor of any coastal goods shall present
to the appropriate officer a bill of coastal goods in the form prescribed by the Board.
(2) Every such consignor shall make a declaration on the bill of coastal
goods presented by him as to the truth of the contents thereof.
148. Coastal goods not to be loaded, until bill relating thereto is passed.- No
vessel shall take on board any coastal goods until the bill relating to such goods has
been passed by the appropriate officer and delivered to the master of the vessel by the
consignor:
(2) Where any coastal goods are unloaded at any port, the appropriate
officer shall permit their clearance if he is satisfied that they are entered in a bill
delivered to him under sub-section (1).
150. Declaration concerning coasting vessel which has touched foreign port.-
The master of a vessel carrying coastal goods which has touched at any foreign port
immediately before its arrival at a port of Pakistan shall deliver, alongwith the bills
referred to in section 149, a declaration stating that fact and indicating the particulars
and specifications of the cargo, if any, discharged or taken on board at such foreign
port.
151. Cargo book.- (1) There shall be kept on board every coasting vessel a cargo
book stating the name of the vessel, the port at which she is registered and the name of
the master.
105
THE CUSTOMS ACT,1969
(2) It shall be the duty of the master of every coasting vessel to enter or
cause to be entered in the cargo book-
(a) the port to which and each voyage on which the vessel is
bound;
(b) the respective times of departure from every port of lading and
of arrival at every port of discharge;
(c) the name of every port of lading and an account of all goods
taken on board at that port with a description of the packages
and the quantities and description of the goods contained
therein or stowed loose and the names of the respective
shippers and the consignees in so far as such particulars be
ascertainable;
(d) the name of every port of discharge and the respective days on
which such goods or any of them are delivered out of such
vessel.
(3) The entries relating to the loading and discharge of goods shall be made
respectively at the ports of lading and discharge.
(4) Every such master shall on demand produce the cargo book for the
inspection of the appropriate officer and such officer may make such note or remark
therein as he considers necessary.
153. Coasting vessel to obtain written orders before departure.- (1) No coasting
vessel which has brought or loaded any coastal goods at a customs-port or coastal port
shall depart from such port until a written order to that effect has been given by the
appropriate officer.
(a) the master of the vessel has answered the questions, if any, put
to him;
(b) all charges and penalties, if any, payable in respect of that vessel
or by its master have been paid or the payment secured by such
guarantee as the appropriate officer may direct.
154. Application of certain provisions of this Act to coastal goods.- (1) Sections
64,65 and 66 shall, so far as may be, apply to coastal goods as they apply to imported
goods or goods for export.
106
THE CUSTOMS ACT,1969
(2) Sections 48 and 60 shall, so far as may be, apply to vessels carrying
coastal goods as they apply to vessels carrying imported goods or goods for export.
155. - Prohibition of the coastal trade of certain goods.- No goods shall be carried
coast-wise or shipped as stores in a coasting vessel contrary to any prohibition or
restriction imposed by or under any law, nor shall such goods or stores be brought to
any place in Pakistan for the purpose of being so carried or shipped.
LEGAL REFERENCE
1. Substituted for the words “Central Government” by the Finance Act, 1972 (XXI of 1972), S.3,
page 56 and Second Schedule S.1, page 76.
107
THE CUSTOMS ACT,1969
1
[CHAPTER XVI-A
155B. Access to the Customs Computerized System.- No person shall transmit to, or
receive information from, the Customs Computerized System unless that person is
registered by the Collector as a user of the Customs Computerized System.
155C. Registered users.- (1) Any person who wishes to be registered as a user
of the Customs Computerized System may apply 2[***] to the Collector in the
prescribed form and shall provide such information in relation to the application as is
prescribed.
(2) The Collector may require an applicant for registration to give such
additional information as he considers necessary for the purpose of the application.
(3) The Collector may grant the application subject to such conditions, as he
deems fit or refuse the application:
Provided that no order shall be passed for refusal of application unless the
applicant has been given a reasonable opportunity of being heard.
155D. Registered users to be allocated unique user identifier.- (1) Any person
registered as a user of the Customs Computerized System shall be allocated a unique
user identifier for use in relation to the Customs Computerized System by the Collector
in such form or of such nature as the Collector may determine.
(2) The unique user identifier allocated pursuant to sub-section (1) of this
section shall be used by the registered user for the purpose of transmitting information
to or receiving information from the Customs Computerized System.
(3) The Collector may impose conditions on a particular registered user or on
registered users generally, relating to the use and security of unique user identifiers.
155E. Use of unique user identifier.- (1) Where information is transmitted to the
Customs Computerized System using a unique user identifier issued to a registered user
by the Collector for that purpose, the transmission of that information shall, in the
absence of proof to the contrary, be sufficient evidence that the registered user to whom
the unique user identifier has been issued has transmitted that information.
108
THE CUSTOMS ACT,1969
(2) Where a unique user identifier is used by a person who is not entitled to
use it, sub-section (1) of this section shall not apply if the registered user to whom the
unique user identifier was issued has, prior to the unauthorized use of that unique user
identifier, notified the Customs that the unique user identifier is no longer secure.
6
[Provided that the Collector of Customs may, in exceptional
circumstances, 10[after giving notice and affording reasonable opportunity of
being heard,] suspend the use of unique user identifier of any person forthwith
on receipt of any complaint or information about violation of any provisions of
this Act:]
155G. Customs to keep records of transmissions.- (1) The Customs shall keep a
record of every transmission sent to or received from a registered user using the
Customs Computerized System.
109
THE CUSTOMS ACT,1969
(2) The record described in sub-section (1) of this section shall be kept for a
period of five years from the date of the sending of or the receipt of the transmission, or
for such other period as may be prescribed by the Board.
(2) In all cases, except where it would defeat the purposes of the audit or
examination, a reasonable advance notice regarding a visit shall be given to the
principals or the agents concerned.
111
THE CUSTOMS ACT,1969
155O. Authorised officer may take possession of and retain documents and
records.- (1) An officer authorised in this behalf may take possession of and retain
any document or record presented in connection with any entry or required to be
produced under this Act.
(3) Every copy so certified shall be admissible as evidence in all courts and
other legal forums as if it were the original.
LEGAL REFERENCE
1. Inserted by the Finance Act, 2003 (I of 2003), S.5(29), page 32
2. By the Finance Act, 2006, the words “in writing” were omitted.
3. Inserted by the Finance Act, 2006.
4. Inserted by the Finance Act, 2006.
5. Added by Finance Act,2008( I of 2008) (Page-46)
6. The proviso “Provided that the Collector of Customs may, in exceptional
circumstances, after recording reasons in writing and after hearing the aggrieved
person, suspend the use of unique user identifier of any person forthwith on receipt of
any complaint or information about violation of the Customs Act,1969 (IV of 1969)”
substituted by Finance Act, 2009.
7. Added vide Finance Act, 2016
8. Omitted / Inserted by Finance Act, 2017.
9. Substituted by Finance Act, 2019. At the time of substitution the words was “Federal
Government”.\
10. Substituted by Finance Act, 2019. At the time of substation the words were “after
recording reasons in writing”
11. Added a proviso to section 155R by Finance Act, 2021.
113
THE CUSTOMS ACT,1969
CHAPTER XVII
156. Punishment for offences.- (1) Whoever commits any offence described in
column 1 of the Table below shall, in addition to and not in derogation of any
punishment to which he may be liable under any other law, be liable to the
punishment mentioned against that offence in column 2 thereof:-
TABLE
114
THE CUSTOMS ACT,1969
81, 89, 90
[(iii) If any person fails to attach or such person shall be liable to a General
electronically upload penalty as under:-
mandatory documents required 1st time Rs.50,000/- General”;
under section 79 or 131 of the 2nd time Rs.100,000/-
Customs Act, 1969-, 3rd time Rs.150,000/-
4th time Rs.200,000/-
5th time and Rs.250,000/-,
onwards,
goods,
117
THE CUSTOMS ACT,1969
detention certificate
issued by the officer of
Customs,
where any goods be such goods shall be liable
3,88
[8.(i) smuggled into or out of to confiscation and any General]
Pakistan,- person concerned in the
offence shall be liable to-
120
THE CUSTOMS ACT,1969
9. (i) If any goods, not being Such goods shall be liable 15 & 16
goods referred to in to confiscation; and any
clause 8, are imported into person concerned in the
or exported from Pakistan offence shall also be liable
evading payment of to a penalty not exceeding
leviable customs-duties or two times the value of the
in violation of any goods.
prohibition or restriction
on the importation or
exportation of such goods
imposed by or under this
Act or any other law; or
123
THE CUSTOMS ACT,1969
124
THE CUSTOMS ACT,1969
15. If any goods in respect of any person who fails to 35 & 105
which drawback has been export such goods or who
paid or any warehoused unloads or relands the
goods cleared for goods or any person who
exportation are not duly aids or abets the evasion of
exported or after being export of such unloading or
exported are unloaded or relanding shall be liable to
relanded at any other a penalty not exceeding
place in Pakistan three times the value of
otherwise than in such goods or 1[twenty five
accordance with the thousand rupees,]
provisions of this Act and whichever be higher; and
the rules. the goods which are not so
exported or which are so
unloaded or relanded
together with the
conveyance from which
they are unloaded or
relanded shall also be
liable to confiscation.
16. If any provisions or stores such provisions or stores
on which drawback has shall be liable to 24 & 35
been paid or on which confiscation.
duty has not been paid for
reason of their being
provisions or stores
127
THE CUSTOMS ACT,1969
20. If, after any vessel has such master shall be liable 43
entered any customs-port to a penalty not exceeding
in which a place has not 1[twenty five thousand
been fixed under section rupees].
43, the master of such
vessel willfully omits, for
128
THE CUSTOMS ACT,1969
23. (i) If, any import or export the person delivering such 45 & 53
manifest delivered under manifest shall be liable to a
any provision of this Act penalty not exceeding
1
is not signed by the person [twenty-five thousand
delivering the same or is rupees].
not in the form prescribed
under this Act or does not
contain the particulars of
the conveyance, goods
and journey required to be
stated in such manifest by
or under this Act, or
130
THE CUSTOMS ACT,1969
permission of the
appropriate officer, as the
case may be,
132
THE CUSTOMS ACT,1969
34. If the person-in-charge of such person shall be liable 64,65 & 141
a conveyance, in any case to a penalty not exceeding
1
other than that provided [twenty-five thousand]
for in clause 33 of this rupees; and all goods so
Table, causes or suffers discharged, put on board
any goods to be the conveyance or water-
discharged, put on board borne shall be liable to
133
THE CUSTOMS ACT,1969
134
THE CUSTOMS ACT,1969
37(i) If any goods are, without the person by whose 66,69 & 70
permission, shipped or authority the goods are
loaded on board a shipped, loaded, landed,
conveyance proceeding water-borne or
out of Pakistan or are transshipped and the
water-borne to be so person-in-charge of the
shipped or loaded or are conveyance employed in
landed except from or at a conveying them shall each
wharf or other place duly be liable to a penalty not
appointed for the purpose; exceeding five times the
or value of the goods; and
such goods shall also be
liable to confiscation.
135
THE CUSTOMS ACT,1969
41. If any goods are found such goods shall be liable to General
concealed in any place, box confiscation.
or close receptacle in any
conveyance and are not duly
accounted for to the
satisfaction of the officer-in-
charge of the custom- house,
42. If any goods are found on such goods shall be liable to 45 & 75
board any conveyance in confiscation.
excess of those entered in
the manifest, or not
136
THE CUSTOMS ACT,1969
46. If, when goods are passed the person guilty of such 79 & 88
by bale or by package, any omission or mis-
omission or mis- description shall be liable
description thereof to a penalty not exceeding
tending to injure the ten times the amount of
revenue be discovered, duty which might have
been lost to Government
by such omission or mis-
description, unless it be
proved to the satisfaction
of the officer-in-charge of
the custom-house that the
variance was accidental.
140
THE CUSTOMS ACT,1969
59. If any goods, after being any person guilty of such Chapter XI
duly warehoused, are removal, concealment,
fraudulently concealed in, abstraction or transferment
or removed from the and every person aiding or
warehouse, or abstracted abetting him shall be liable
from any package, or to a penalty not exceeding
1
transferred from one [twenty five thousand
40
package to another, or rupees] [; and upon
otherwise, for the purpose conviction by a Special
of illegal removal or Judge, he shall further be
concealment, liable to imprisonment for
141
THE CUSTOMS ACT,1969
sentence of the
imprisonment shall not be
less than three years.
(f) If the amount of the Such currency shall be
currency over and liable to confiscation and
above the permissible any person concerned in
limit exceeds US the offence shall be liable
dollars 200,000/- or to a penalty not exceeding
equivalent in value of ten times the value of the
(currency of other currency; and upon
denomination) etc. conviction by a Special
Judge be liable to
imprisonment for a term
not exceeding fourteen
years;
Provided further that the
sentence of the
imprisonment shall not be
less than five years.
(iii) Gold , silver , 139(2)
platinum and
precious stones in
any form;
(a) If the quantity of Such goods shall be liable
such goods is up to to confiscation and any
15 tola gold or person concerned in the
equivalent in value offence shall be liable to a
(silver or platinum) penalty not exceeding the
etc. value of the goods;
(b) If the quantity of Such currency shall be
such goods is from liable to confiscation and
16-30 tola gold or any person concerned in
equivalent in value the offence shall be liable
(silver or platinum) to a penalty not exceeding
etc. two times the value of the
currency;
(c) if the quantity of Such goods shall be liable
such goods is from to confiscation and any
31-50 tola gold or person concerned in the
equivalent in value offence shall be liable to a
(silver or platinum) penalty not exceeding three
etc. times the value of the
goods; and upon conviction
147
THE CUSTOMS ACT,1969
by a Special Judge he
further be liable to
imprisonment for a term
not exceeding one year;
(d ) the quantity of such Such good shall be liable to
good is from 51-100 confiscation and any
tola gold or person concerned in the
equivalent in value offence shall be liable to a
(silver or penalty not exceeding three
platinum)etc. times the value of the
goods; and upon conviction
by a Special Judge he shall
further be liable to
imprisonment for a term
not exceeding three years;
(e) If the quantity of such Such goods shall be liable
goods is from 101-200 to confiscation and any
tola gold or equivalent person concerned in the
in value (silver or offence shall be liable to a
platinum)etc. penalty not exceeding four
times the value of the
goods; and upon conviction
by a Special Judge he shall
further be liable to
imprisonment for a term
not exceeding five years;
(f) If the quantity of such Such currency shall be
goods is from 201-500 liable to confiscation and
tola gold or equivalent any person concerned in
in value (silver or the offence shall be liable
platinum) etc. to a penalty not exceeding
five times the value of the
currency; and upon
conviction by a Special
Judge he shall further be
liable to imprisonment for
a term not exceeding ten
years:
72. If in the case of any the master of the vessel 148 to 153
coasting vessel the shall in each case be liable
provisions of sections 148, to a penalty not exceeding
149, 150,151, 152 and 153 19[fifteen thousand] rupees.
are not compiled with,
75. If any rule which prevents the master of the vessel 155
or regulates the taking of carrying such goods shall
any coastal goods out of be liable to a penalty not
1
Pakistan is contravened, exceeding [twenty-five
thousand] rupees, and
where such contravention
results in the loss of any
customs-duty he shall
further be liable to a
penalty not exceeding three
times such duty; and the
goods in respect of which
such contravention is
committed shall also be
liable to confiscation.
76(i). If, contrary to the the master of such vessel Chapter XVI
provisions of this Act or shall be liable to a penalty
2
any other law for the time not exceeding [ten
150
THE CUSTOMS ACT,1969
151
THE CUSTOMS ACT,1969
question,
84. If, in relation to any goods the person concerned shall 83 & 131
imported or intended to be be liable to a penalty not
1
exported by land, an order exceeding [twenty-five
permitting clearance under thousand] rupees, and such
section 83 or section 131 goods shall also be liable to
is not produced, confiscation.
aforesaid, or rescues
any person so
detained; or
official capacity,
88. If any person not holding such person shall be liable 207
a license granted under to a penalty not exceeding
section 207 acts as an 2[ten thousand] rupees.
agent for the transaction
of business as therein
mentioned,
54
89.53[(i) If any person without [such goods shall be General
lawful excuse, the proof liable to confiscation and
of which shall be on such any person concerned in
person, acquires the offence shall be liable
possession of, or is in any to a penalty not exceeding
way concerned in ten times the value of the
carrying, removing, goods; and, where the
depositing, harbouring, value of such goods
55 71
keeping or concealing exceeds [ [three]
91
[,retailing], or in any hundred thousand rupees],
manner dealing with he shall further be liable,
smuggled goods or any upon conviction by a
goods in respect to which Special Judge, to
there may be reasonable imprisonment for a term
suspicion that they are not exceeding six years and
smuggled goods; to a fine not exceeding ten
times the value of such
goods 75[……]
56
[(ii) If the smuggled goods are Such goods shall be liable
narcotics drugs, to confiscation and any
psychotropic substances person concerned in the
or controlled substances,- offence shall be liable to --
156
THE CUSTOMS ACT,1969
psychotropic
substance or
controlled substance
exceeds one hundred
grams but does not
exceed one kilogram;
death or
(c) if the quantity of the imprisonment for life, or
narcotic drug, imprisonment for a term
psychotropic which may extend to
substance or fourteen years and shall
controlled substance also be liable to fine which
exceeds the limits may be up to one million
specified in clause rupees;
(b)
Provided that, if the
quantity exceeds ten
kilograms the punishment
shall not be less than
imprisonment for life.]
92. Any person who bears such person shall be liable, General
himself in disguise or on conviction before, a
4
being armed with an [Special Judge] to
offensive weapon, imprisonment for a term
intimidates any person not exceeding 58[seven]
duly engaged in the years 76[…...]
discharge of any duty or
the exercise of any power
imposed or conferred on
him by or under any of the
provisions of this Act or
any person acting in his
aid or uses such weapon
against any such person-
thereon or without
giving security for its
payment; or
Explanation:- If in any
proceedings under this
clause, any question arises
as to whether any signal
or message was such a
signal or message as
aforesaid, the burden of
proof shall lie upon the
defendant,
161
THE CUSTOMS ACT,1969
162
THE CUSTOMS ACT,1969
Nothing in Column 3 of the above Table Shall be deemed to have the force of law.
163
THE CUSTOMS ACT,1969
Explanation.- For the purposes of any penal provisions of this Act, the
offence of contravening, in respect of any goods, any of the provisions of this Act or
the rules or any other law for the time being in force, shall be deemed to have been
committed when, in the case of import, any vessel containing such goods arrives
within twelve nautical miles of the sea coast of Pakistan (each nautical mile
measuring six thousand and eighty feet) or when, in the case of export, such goods
have been loaded on any conveyance for transport to any destination outside
Pakistan, or when in either case, the connected customs documents have been
presented to the appropriate officer 63[:]
64
[Provided that in the case of accompanied baggage or any unmanifested
goods meant for export, the offence shall be deemed to have been committed when
such baggage or goods enter the customs-area or are delivered to the carrier of the
conveyance.]
(2) Where 65[any goods specified in clause (s) of section 2 or in a notification
issued there-under] are seized under this Act in the reasonable belief that an act to
defraud the Government of any duty payable thereon or to evade any prohibition or
restriction for the time being in force by or under this Act has been committed in
respect of such goods, or that there is intent to commit such act, the burden of
proving that no such act has been committed or there was no such intent shall be on
the person from whose possession the goods were seized.
66
[(3) OMITTED]
83
[(4) Notwithstanding anything contained in this Act, the Board may, by
notification in the official Gazette, regulate the imposition, including the time and
manner, of any penalty specified in sub-section (1).]
164
THE CUSTOMS ACT,1969
(3) The proceedings under this section shall be without prejudice to any
other liability that the authority or officer or official or the person may incur under
any other law for the time being in force.]
157. Extent of confiscation.- (1) Confiscation of any goods under this Act
includes any package in which they are found, and all other contents thereof.
(2) Every conveyance of whatever kind used in the removal of any goods
liable to confiscation under this Act shall also be liable to confiscation.
Provided that, where a conveyance liable to confiscation has been seized by
an officer of customs, the 67[appropriate officer] may, in such circumstances as may
be prescribed by rules, order its release, pending the adjudication of the case
involving its confiscation if the owner of the conveyance furnishes him with a
sufficient guarantee from a scheduled bank for the due production of the conveyance
at any time and place it is required by the 67[appropriate officer] to be produced:
92
[Provided further that where a conveyance found carrying smuggled goods
in false cavities or being used exclusively or wholly for transportation of offending
goods under clause (s) of section 2 of this Act, has been seized for the third time, no
option to pay fine in lieu of the confiscation shall be given.]
(3) Confiscation of any vessel under this Act includes her tackle, apparel
and furniture.
LEGAL REFERENCE
1. Substituted for the words “five thousand rupees” by the Finance Ordinance, 1982
2. Substituted for the words “two thousand rupees” by the Finance Ordinance, 1982.
3. Renumber S.No.8 as sub-paragraph(i)and new paragraph(ii) was added by FA,2005.
4. Substituted for the word “Magistrate” by the Prevention of Smuggling Act, 1977 (XII of
1977), S.51(ii)(a), page 223.
5. Substituted for the words “ten years” by the Finance Act, 1988 (VI of 1988), S.5(3), page
938. The words “ten years” were previously substituted for the words “six years” by the
Finance Act, 1973 (L of 1973), S.9(7)(a), page 531.
6. Substituted for the full stop by the Finance Act, 1973 (L of 1973), S.9(7)(b), page 531.
7. Added by the Finance Act, 1973 (L of 1973), S.9(7)(b), page 531 and substituted by the
Prevention and Smuggling Act, 1977 (XII of 1977), S.51(ix), page 230.. At the time of
substitution this proviso was as under:-
“Provided that, in the case of such goods essential to the life of the community as may be
notified by the Federal Government in the official Gazette, the sentence of imprisonment
shall not be less than five years and the whole or any part of the property of the person
convicted shall also be liable to confiscation.”.
8. Omitted by Finance Act, 2003.
9. Added by the Finance Act, 2005.
10. Inserted by the Finance Act, 1986 (I of 1986), S.6(5)(a), page 11.
11. Substituted by the Finance Act, 2006. At that time serial 12 was as under:-
11a[such
12. If any person who without any person shall be liable to a 26
reasonable excuse fails to comply penalty not exceeding one hundred
165
THE CUSTOMS ACT,1969
with any requisition made under thousand rupees and on conviction by
section 26 or to furnish any a Special Judge shall be liable to
information as required by or imprisonment for a term not exceeding
under the rules to be furnished, two years, fine, or with both.]
11a. Substituted by the Finance Act, 2005.
12. Inserted by the Finance Act, 2006.
13. Substituted for the full stop and added by the Federal Laws (R&D), 1981 (XXVII of 1981),
S.3.
14. Inserted by the Finance Act, 2004 (II of 2004), S.3(14), pages 16-17.
15. Substituted for the words “Magistrate” by the Finance Act, 1986 (I of 1986), S.6(5)(b), page
11.
16. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(ii), page 60. At the time
of substitution this was as under:
“such goods shall be liable to confiscation”.
17. Inserted by the Finance Act, 2003 (I of 2003), 5(30(i), page 36.-
18. Inserted by the Finance Act, 1993 (X of 1993), S.4(iv), page 121.
19. Substituted for the words “two thousand five hundred rupees” by the Finance
Ordinance,1982 (XII of 1982), S.6(9)(a)(I), page 60.
20. Substituted for the words “five hundred rupees” by the Finance Ordinance, 1982
21. Inserted by the Finance Act, 2005.
22. Substituted by the Finance Act, 1999 (IV of 1999), S.10(9)(a), page 768. At the time of
substitution this was as under:-
“43. If, after any goods have been landed if the goods cannot be recovered, 79
& 80.”. and before they have been passed the owner shall be liable, in addition through the
custom-house, the owner to full duty, to a penalty not exceeding removes or attempts to
remove them, five time the amount of such duty, or if with the intention of defrauding the if
such goods are not dutiable or duty revenue, thereon cannot be ascertained to a penalty not
exceeding 22a[twenty-five thousand rupees], for every missing or deficient package or
separate article, and in the case of bulk goods to a penalty not exceeding 29a[twenty-five
thousand rupees] or the value of the goods, whichever be higher.
22a. Substituted for the words “five thousand rupees” by the Finance Ordinance, 1982
(XII of 1982), S.6(9)(a)(i), page 60.
23. Substituted for the words “twenty-five” by the Finance Act, 2003 (I of 2003),
S.5(30)(ii)(a)(I), page 36.
24. Inserted by the Finance Act, 2003 (I of 2003), S.5(30),(ii)(a)(ii), page 37.
25. Substituted for the figures “79 & 80” by the Finance Act, 2003 (I of 2003), S.5(30)(ii)(b),
page 37.
26. Omitted the figure, letters, comma and word “79A, and 80A” by the FA,2005.
27. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(a), page 37.
27A. By the Finance Act, 2006, the words”a bill of entry or bill of export or” were omitted.
28. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(b), page 37.
29. Substituted for the figures “79 & 131” by the Finance Act, 2003 (I of 2003), S.5(30)(iii)(c),
page 37
30. Omitted the figure, letters, comma and word “79A, and 1310A” by the FA,2005.
30A. Inserted by Finance Act, 2005.
31. Substituted for the figures “79 & 131” by the Finance Act, 2003
32. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(v)(a)(I), page 37.
33. Inserted by the Finance Act, 2003 (I of 2003), S.5(30),(v)(a)(ii), page 37.
34. Added by the Finance Act, 2003 (I of 2003), S.5(30)(b), page 38.
35. Inserted by the Finance Act, 2006.
36. Inserted by the Finance Ordinance, 1982 (XII of 1982&added by the FA,2005.
37. Substituted for the word “keeper” by the Finance Act, 1990 (VII of 1990), S.6(9)(a)(i), page
37.,
38. Omitted the words “keeper or” by the Finance 1990(VII of 1990.
39. Substituted for the words “two hundred and fifty rupees” by the Finance Ordinance,1982
(XII of 1982),S.6(9)(a)(i), page 60.
40. Added by the Finance Act, 1987 (VI of 1987), S.8(3)(a), page 34.
166
THE CUSTOMS ACT,1969
41. Substituted for the words “twenty-five thousand rupees” by the Finance Act, 1999 (IV of
1999), S.10(9)(b), page 768 and earlier substituted for the words “five thousand rupees” by
the Finance Ordinance, 1982 (XII of 1982.
42. Substituted for the words “twenty five thousand” by the FA, 2005.
43. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vi)(b), page 38.
44. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vi)(c), page 38.
45. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(vii)(a)(I), page 38.
46. Substituted for the word and figure “section 131” by the Finance Act, 2003.
47. Omitted the word, figure and letter “and 131A” in column (1) &(3)by the FA, 2005.
48. Inserted by the Finance Act, 2003 (I of 2003), S.5(30(vii)(b)(I), pag
49. Substituted for the words “one thousand rupees for every package of such goods” by the
Finance Act, 2003 (I of 2003), S.5(30)(vii)(b)(ii), page 38
50. Substituted clause 9i) of item 77 by the Federal Laws, 1981..
51. Substituted in clause (a) for the words “molests or assaults any person duty engaged” by the
Finance Act, 2003 (I of 2003),S.5(30)(ix)(a), page 39.
52. Inserted by the Finance Act, 2003 (I of 2003), S.5(30)(ix)(b), page 39.
53. S.No. 80 renumbered as sub-paragraph (i) by the Finance Act, 2005.
54 Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(iv), page 60. At the time
of substitution this was as under:-
“such goods shall be liable to confiscation any person concerned in the offence shall be liable
to a penalty not exceeding ten times the value of the goods; and upon conviction by a Special
Judge, to imprisonment for a term not exceeding six years and to fine not exceeding ten times
the value of such goods and if the Special Judge in his discretion so orders also to
whipping.”.
55. Substituted for the words “ten thousand rupees” by the Finance Act, 1998.
56. Added by the Finance Act, 2005
57. Substituted by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(v), page 60. At the time of
substitution this was as under:
“such person shall on conviction before a Special Judge be liable to imprisonment for a term
not exceeding one year, or to a fine not exceeding five thousand rupees or to both.”..
58. Substituted for the word “three” by the Finance Act, 2004.
59. Substituted by the Finance Act, 2006. At that time serial 96 was as under:-
60. Substituted for the words “ten thousand rupees” by the Finance Ordinance, 1982.
61. Added by the Finance Act, 1999 (IV of 1999), S.10(9)(c), page 768.
62. Added new serial numbers “100 to 104” by the Finance Act, 2003.
63. Substituted for the full stop by the Finance Ordinance, 1982.
64. Added by the Finance Ordinance, 1982 (XII of 1982), S.6(9)(a)(vi), page 61.
65. Substituted for the words and commas “currency, gold, silver, precious stones, ornaments or
other manufactures of gold silver or previous stones which the 65a[Federal Government] may,
by notification in the official Gazette, specify” by the Finance Ordinance, 1982 (XII of 1982),
S.6(9)(b), page 61.
65a. Substituted for the words “Central Government” by the Finance Act, 1972 (XXI of
1972), S.3, page 56 and Second Schedule S.1, page 76.
66. Sub-section (3) omitted by the Finance Act, 1969 (XVI of 1969), S.4. At the time of omission
this sub-section was as under:-
167
THE CUSTOMS ACT,1969
“(3) Where any person charged of an offence under clause 8 or clause 89 of the Table
under sub-section (1) is acquitted by a Magistrate, and the finding of the Magistrate be that
the goods in respect of which the person was charged are not smuggled goods, such
person shall not be liable to any penalty, nor such goods shall be liable to confiscation, and if
any order confiscating the goods or imposing any penalty has already been made to an
officer of customs, it shall become null and void.”.
67. Substituted for the words “Collector of Customs” by the Finance Ordinance, 1982 (XII of
1982.
68. Added by Finance Act,2008(I of 2008) (Page-46)
69. Substituted for the word “twenty five”, by the Finance Act,2010.
70. Substituted for the words “not exceeding twenty-five thousand rupees and any goods”, by the
Finance Act,2010.
71. Substituted the word “One”, by the Finance Act,2010.
72. Omitted the comma and words [, and, if the Special Judge in his discretion so orders, also
to whipping] by Finance Act, 2012.
73. Substituted for the words and numbers “ 79,79A, 131A” by Finance Act, 2012
74. Substituted for the words “ such person shall be liable to a penalty 70[upto twice the value of
the goods and goods] in respect of which such offence has been committed shall also be
liable to confiscation” by the Finance Act, 2012.
75. Substituted the words “and if the Special Judge in his discretion so orders also to whipping”
by Finance Ac, 2012.
76. Substituted the words “and, if the Special Judge in his discretion so orders, to whipping” by
Finance Act, 2012.
77. Inserted by Finance Act, 2012
78. Inserted by Finance Act, 2012
79. Inserted by Finance Act, 2012.
80. Substituted by Finance Act, 2015.
81. Inserted by Finance Act, 2015.
82. Substituted by Finance Act, 2015.at the time of substitution the wording is as under:
“[If any person contravenes any rule or condition relatable to section 128 or section 129.]"
83. Inserted by Finance Act, 2017.
84. Inserted by Finance Act, 2018.
85. Substituted by Finance Act,2019. At the time of substitution the wording was :
168
THE CUSTOMS ACT,1969
(ii) If any person contravenes the Such person shall be General]
requirement of placement of invoice liable to a penalty not
and packing list inside the import exceeding fifty
container or consignment. thousand rupees
90. Omitted by Finance Act, 2021. At the time of omission S.No.47A was as under:-
35,85[47A If the goods declaration is The owner of such goods shall be 79]
not filed within the liable to a penalty at the rate of
prescribed period of ten rupees five thousand per day for the
days, initial five days of default and at the
rate of rupees ten thousand per day
for each day of default thereafter:
Provided that the total
penalty imposed shall not exceed
rupees one hundred thousand.
87[Provided further that the aforesaid
penalty shall not apply in cases
where goods are imported or
received as gift by individuals
without NTN or STRN through
courier or air cargo, diplomatic
cargo and imports made by the
Federal Government or Provincial
Government or Local Government,]
91. Inserted word “retailing” in serial No.89 & 90 of Section 156(1) by the Finance Act, 2021
92. Added proviso by Finance Act, 2021.
169
THE CUSTOMS ACT,1969
CHAPTER XVIII
(2) The gazetted officer of customs or the Magistrate before whom such
person is brought shall, if he sees no reasonable ground for search, forthwith
discharge the person and record reasons for doing so, or else direct search to be
made.
(3) Before making a search under section 158, the officer of customs
shall call upon two or more persons to attend and witness the search and may issue
an order in writing to them or any of them so to do, and the search shall be made in
the presence of such persons and a list of all things seized in the course of such
search shall be prepared by such officer or other person and signed by such
witnesses.
170
THE CUSTOMS ACT,1969
(2) The aforesaid officer, if he has reasonable grounds for believing that
such person has any such goods secreted inside his body and that it is necessary to
have the body of such person screened or X-Rayed, may make an order to that effect
, or else discharge such person forthwith, except where he is held on any other
grounds.
(4) The radiologist shall screen or X-Ray the body of such person and
forward his report thereon, together with any X-Ray picture taken by him to the
aforesaid officer without unnecessary delay.
Provided that in the case of a female no such action shall be taken except on
the advice and under the supervision of a female registered medical practitioner.
(6) Where any person is brought before an officer of customs not below
the rank of an Assistant Collector 2A[**] of Customs as aforesaid, he may direct that
pending completion of all action under this section such person be detained.
171
THE CUSTOMS ACT,1969
(2) Any person duly empowered for the prevention of smuggling who has
reason to believe that any person who has committed an offence of smuggling under
this Act may arrest such person.
(3) Every person arrested under this Act shall be taken forthwith before
the nearest officer of customs authorized by the Collector of Customs to deal with
such cases, or, if there is no such officer of customs within a reasonable distance, to
the officer-in-charge of the nearest police-station.
3
[(4) When any person arrested under this Act is taken before an officer of
customs or the officer-in-charge of a police-station, as required by sub-section (3), or
when such officer of customs or officer-in-charge of a police-station himself arrests
any person under this Act, such officer or officer-in-charge shall, if the offence is
bailable, admit him to bail to appear before the Special Judge having jurisdiction or,
if the offence is non-bailable, have him taken in custody to the Special Judge or if
there is no Special Judge within a reasonable distance, to the 4[nearest Judicial
Magistrate,] within twenty-four hours of such arrest, excluding the time necessary
for the journey from the place of arrest to the Court of the Special Judge or , as the
case may be, of such Magistrate.
(5) When any person is taken under sub-section (4) before the Special
Judge, he may, on the request of such person, after perusing the record, if any, and
after giving the prosecution an opportunity of being heard, admit him to bail on his
executing a bond, with or without sureties, or refuse to admit him to bail and direct
his detention at such place as he deems fit:
Provided that nothing herein contained shall preclude the Special Judge from
cancelling the bail of any such person at a subsequent stage if, for any reason, he
considers such cancellation necessary, but before passing such order he shall afford
such person an opportunity of being heard, unless for reasons to be recorded he
considers that the affording of such opportunity shall defeat the purposes of this Act.
(6) When such person is taken under sub-section (4) before a Magistrate,
such Magistrate may, after authorizing his detention in such custody, at such place
and for such period as he considers necessary or proper for facilitating his earliest
production before the Special Judge, direct his production before the Special Judge
on a date and time to be fixed by such Magistrate, or direct such person to be
forthwith taken to, and produced before, the Special Judge and he shall be so taken.
(8) When any person arrested under this Act is brought before an officer
of customs or the officer-in-charge of a police-station as required by sub-section(3),
or when such officer of customs or officer-in-charge of a police-station himself
arrests any person under this Act, such officer shall, if he is an officer of customs,
record the fact of arrest and other relevant particulars in the register mentioned in
sub-section (12) or, if he is an officer-in-charge of a police-station, record such fact
in the register ordinarily maintained by him, and shall immediately proceed to
inquire into the charge against such person and if he completes the inquiry within
twenty-four hours of his arrest, excluding the time necessary for journey as
aforesaid, he may, after producing such person before the Special Judge or the
5
[nearest Judicial Magistrate] make a request for his further detention in his custody.
(9) While holding an inquiry under sub-section (8), the officer of customs
shall exercise the same powers as are exercisable by an officer-in-charge of a police-
station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer
and the officer-in-charge of a police-station shall exercise such powers subject to the
foregoing provisions of this section while holding an inquiry under this Act.
(11) The Special Judge to whom a report has been made under sub-section
(10) may, after the perusal of record of the inquiry and hearing the prosecution, agree
with such report and discharge the accused or, if he is of the opinion that there is
sufficient ground for proceeding against such person, proceed with his trial and
direct the prosecution to produce evidence.
(12) The officer of customs empowered to hold inquiry under this section
shall maintain a register to be called “Register of Arrests and Detention” in the
prescribed form in which he shall enter the name and other particulars of every
person arrested under this Act, together with the time and date of arrest, the details of
the information received, the details of things, goods or documents recovered from
his custody, the name of the witnesses and the explanation, if any, given by him and
the manner in which the inquiry has been conducted from day to day; and such
173
THE CUSTOMS ACT,1969
register or authenticated copies of its aforesaid entries shall be produced before the
Special Judge whenever such officer is so directed by him.
(13) After completing the inquiry, the officer of customs shall submit to
the Special Judge a report in the form and manner, as early as possible, in which the
officer-in-charge of a police-station submits a challan before a Court, or if such
inquiry has been conducted by an officer-in-charge of a police-station, he shall
submit a challan before the Special Judge.
(14) The officer of customs, or as the case may be, the officer-in-charge of
a police-station shall immediately intimate the fact of the arrest of a person under
sub-sections (1),(2) or (4) to the Special Judge who may direct such officer to
produce that person at such time and place and on such date as the Special Judge
considers expedient and such officer or officer-in-charge shall act accordingly.
(15) Any Magistrate of the first class may record any statement or
confession during inquiry under this Act, in accordance with the provisions of
section 164 of the Code of Criminal Procedure,1898 (Act V of 1898).
162. Power to issue search warrant.- (1) Any 5[Judicial Magistrate] may, on
application by a gazetted officer of customs stating the grounds of his belief that
goods liable to confiscation or documents or things which in his opinion will be
useful as evidence in any proceeding under this Act are secreted in any place within
the local limits of the jurisdiction of such Magistrate, issue a warrant to search for
such goods, documents or things.
(2) Such warrant shall be executed in the same way, and shall have the
same effect, as a search-warrant issued under the Code of Criminal Procedure, 1898
(Act V of 1898).
163. Power to search and arrest without warrant.- (1) Whenever any officer
of customs not below the rank of an 2/2A[Assistant Collector] of Customs or any other
officer of like rank duly employed for the prevention of smuggling has reasonable
grounds for believing that any goods liable to confiscation or any documents or
things which in his opinion will be useful for or relevant to any proceeding under this
Act are concealed or kept in any place and that there is a danger that they may be
removed before a search can be effected under section 162, he may, after preparing a
statement in writing of the grounds of his belief and of the goods, documents or
174
THE CUSTOMS ACT,1969
things for which search is to be made, search or cause search to be made for such
goods, documents or things in that place.
(3) All searches made under this section shall be carried out mutatis
mutandis in accordance with the provisions of the Code of Criminal Procedure, 1898
(Act V of 1898).
(5) The provisions of sub-section (4) shall apply only to the areas within
five miles of the land frontier of Pakistan, and within a five miles belt running along
the sea coast of Pakistan.
175
THE CUSTOMS ACT,1969
164. Power to stop and search conveyances.- (1) Where the appropriate officer
has reason to believe that within the territories of Pakistan(including territorial
waters) any conveyance has been, is being or is about to be, used in the smuggling of
any goods or in the carriage of any smuggled goods, he may at any time stop any
such conveyance or, in the case of an aircraft, compel it to land, and -
(a) rummage and search any part of the conveyance;
(b) examine and search any goods thereon; and
(c) break open the lock of any door, fixture or package for making
search.
165. Power to examine persons.- (1) The appropriate officer may, during the
course of an inquiry in connection with the smuggling of any goods.-
176
THE CUSTOMS ACT,1969
(b) examine any person acquainted with the facts and circumstances of
the case.
(2) The appropriate officer shall exercise the powers in sub-section (1)
only in relation to a person who is readily available or present before him and shall
be subject to the same provisions as an officer-in-charge of a police-station is subject
to under the Code of Criminal Procedure, 1898 (V of 1898), when investigating a
cognizable offence.
Provided that the exemption under section 132 of the Code of Civil
Procedure, 1908 (Act V of 1908), shall be applicable to any requisition for
attendance under this section.
168. Seizure of things liable to confiscation.- (1) The appropriate officer may
seize any goods liable to confiscation under this Act, and where it is not practicable
to seize any such goods, he may serve on the owner of the goods or any person
177
THE CUSTOMS ACT,1969
holding them in his possession or charge an order that he shall not remove, part with,
or otherwise deal with the goods except with the previous permission of such officer.
(2) Where any goods are seized under sub-section (1) and no show cause
notice in respect thereof is given under section 180 within two months of the seizure
of the goods, the goods shall be returned to the person from whose possession they
were seized:
Provided that the aforesaid period of two months may, for reasons to be
recorded in writing, be extended by the Collector of Customs by a period not
exceeding two months 8[:]
9
[Provided further that the limitation prescribed under sub-section (2) shall
not apply to goods specified under the first proviso to section 181.]
(3) The appropriate officer may seize any documents or things which in
his opinion will be useful as evidence in any proceeding under this Act.
(4) The person from whose custody any documents are seized under sub-
section (3) shall be entitled to make copies thereof or take extracts therefrom in the
presence of an officer of customs.
10
[169. Things seized how dealt with.- (1) All things seized on the ground that
they are liable to confiscation under this Act shall, without unnecessary delay, be
delivered into the care of the officer of customs authorized to receive the same.
(2) If there be no such officer at hand, such things shall be carried to and
deposited at the customs-house nearest to the place of seizure.
goods are subject to speedy or natural decay, the court may on an application after
recoding evidence, as it thinks necessary, order the goods to be sold or otherwise
dispose of in terms of this section:
Provided also that such samples shall be deemed to be whole of the property
in an inquiry or proceedings in relation to such offence before any authority or
court.]
(5) If on such adjudication or, as the case may be, in such appeal or
proceeding in Court, the thing so sold is found not to have been liable to such
confiscation, the entire sale proceeds, after necessary deduction of duties, taxes or
dues as provided in section 201, shall be handed over to the owner.]
(2) In every such case the police-officer seizing the things shall send
written notice of their seizure and detention to the nearest custom-house and
immediately after the dismissal of the complaint or the conclusion of the inquiry or
trial, he shall cause such things to be conveyed to and deposited at, the nearest
custom-house, to be there proceeded against according to law.
or any other officer authorized by the Provincial Government in this behalf may
detain any package, brought whether by land, air or sea into Pakistan which he
suspects to contain-
(a) any newspaper or book as defined in the 13[***] West Pakistan Press
and Publication Ordinance, 1963 (West Pakistan Ordinance. XXX of
1963).
(2) Any officer detaining a package under sub-section (1) shall, where
practicable, forthwith send by post to the addressee or consignee of such package
notice of the fact of such detention.
(3) The Provincial Government shall cause the contents of such package
to be examined, and if it appears to the Provincial Government that the package
contains any such newspaper, book or other document, as aforesaid, it may pass such
order as to the disposal of the package and its contents as it may deem proper, and, if
it does not so appear, shall release the package and its contents unless the same be
otherwise liable to seizure under any law for the time being in force:
Provided that any person interested in any package detained under the
provisions of this section may, within two months of the date of such detention,
apply to the Provincial Government for release of the same, and the Provincial
Government shall consider such application and pass such order thereon as it may
deem to be proper:
Provided further that if such application is rejected, the applicant may, within
two months of the date of the order rejecting the application, apply to the High Court
for release of the package or its contents on the ground that the package or the
contents do not contain any such newspaper, book or other document.
(4) No order passed or action taken under this section shall be called in
question in any court save as provided in the second proviso to sub-section (3).
(3) of section 172 shall be heard and determined in the manner provided by section
99D to 99F of the Code of Criminal Procedure, 1898 (Act V of 1898), by a special
bench of the High Court constituted in the manner provided by section 99C of that
Code.
Provided that nothing in this section shall apply to any imported goods
passing from a foreign frontier to an inland customs-station by a route prescribed
under clause (c) of section 9:
Provided further that the Board may, by notification in the official Gazette,
direct that the provisions of this section shall not apply to any particular area
adjoining foreign territory in relation to goods of any specified description or value.
177. Restriction on the possession of goods in certain areas.- (1) This section
shall apply to such areas adjacent to the frontier of Pakistan as may, from time to
time, be notified by the Board in the official Gazette.
181
THE CUSTOMS ACT,1969
(2) In any area to which this section for the time being applies, no person
shall have in his possession or control any such goods or class of goods in excess of
such quantity or value as may from time to time be notified by the 1[Federal
Government] or, with the previous approval of the 1[Federal Government], by the
Provincial Government, in the official Gazette, except under a permit granted by the
Government which issued the notification in respect of the particular goods or class
of goods, or by an officer authorized by such Government.
(3) The cases shall be decided within 37,47[ninety] days of the 38[issuance
of show cause notice]or within such period extended by the Collector for which
reasons shall be recorded in writing, but such extended period shall in no case exceed
38
[sixty] days:
50
[Provided that in cases, wherein the provisions of clause (s) of section 2
have been invoked, such cases shall be decided within a period of thirty days of the
issuance of show cause notice:]
38
[Provided 50[further] that any period during which the proceedings are
adjourned on account of a stay order or alternative dispute resolution proceedings or
the time taken through adjournment by the petitioner not exceeding thirty days, shall
be excluded for the computation of aforesaid periods:]
51
[Provided further that in cases where in goods are lying at sea-port, airport
or dryport, these shall be decided within thirty days of the issuance of show cause
notice which can be extended by another fifteen days by Collector of Customs, if
required so.]
(4) The Board shall have the powers to regulate the system of
adjudication including transfer of cases and extension of time-limit in exceptional
circumstance.]
17
[(5) Notwithstanding anything contained in this Act, or any other law for
the time being in force and notwithstanding any decision or judgment of any forum,
authority or court whether passed on or before the commencement of the Finance
Act, 2006, the time for adjudication in all the cases pending as on first day of July,
2006, for whatsoever reasons, shall be deemed always to have been extended up to
31st day of December, 2006.]
18
[179A. OMITTED
181. Option to pay fine in lieu of confiscated goods.- Whenever an order for the
confiscation of goods is passed under this Act, the officer passing the order may give
the owner of the goods an option to pay in lieu of the confiscation of the goods such
fine as the officer thinks fit 19[:]
20
[Provided that the Board may, by an order, specify the goods or class of
goods where such option shall not be given:
Provided further that the Board may, by an order, fix the amount of fine
which, in lieu of confiscation, shall be imposed on any goods or class of goods
imported in violation of the provisions of section 15 or of a notification issued under
section 16 48[or in violation of any other provisions of this Act], or any other law for
the time being in force.]
Explanation.- Any fine in lieu of confiscation of goods imposed under this section
shall be in addition to any duty and charges payable in respect of such goods , and of
any penalty that might have been imposed in addition to the confiscation of goods.
fit, try in a summary way, any offence under this Act where the value of the goods
involved in such offence does not exceed one thousand rupees.
(2) In the trial of an offence under sub-section (1), the provisions of sub-
section (1) of section 262 and sections 263, 264 and 265 of the said Code shall, so far
applicable and with the necessary adaptation, apply.
(4) If a Special Judge is, for any reason, temporarily unable to perform
his duties under this Act, he may generally or specially authorize the Sessions Judge
185
THE CUSTOMS ACT,1969
26
[***] of the district to perform such duties of an urgent nature as he may deem
proper and such Sessions Judge 26[***] shall perform such duties.
27
[185A. Cognizance of offences by Special Judges.- (1) Notwithstanding
anything contained in this Act or any other law for the time being in force, a Special
Judge may, within the limits of his jurisdiction, take cognizance of any offence
punishable under this Act-
(a) upon a report in writing made by an officer of customs 27a[***] or by
any other officer especially authorized in this behalf by the Federal
Government; or
(b) upon receiving a complaint or information of facts constituting such
offence made or communicated by any person; or
I upon his own knowledge acquired during any proceeding before him
under this Act or under the Prevention of Smuggling Act,1977.
(2) Upon the receipt of report under clause (a) of sub-section (1), the
Special Judge shall proceed with the trial of the accused:
49
[Provided that such cases shall be disposed of within six months of the
receipt of report or within such extended period as the Special Judge may, for
reasons to be recorded in writing, fix.]
(4) If, after conducting such inquiry or after considering the report of
such Magistrate or officer, the Special Judge is of the opinion that-
(a) there is no sufficient ground for proceeding, he may dismiss the
complaint, or
(b) there is sufficient ground for proceeding, he may proceed against the
person complained against in accordance with law.
186
THE CUSTOMS ACT,1969
(2) For the purposes of sub-section (1), the Code of Criminal Procedure,
1898(Act V of 1898), shall have effect as if an offence punishable under this Act
were one of the offences referred to in sub-section (1) of section 337 of the Code.
185D Transfer of cases.- (1) Where more than one Special Judge are appointed
within the territorial jurisdiction of a Special Appellate Court, the Special Appellate
Court, and where not more than one Special Judge is so appointed, the Federal
Government, may, by order in writing direct the transfer, at any stage of the trial, of
any case from the court of one Special Judge to the Court of another Special Judge
for disposal, whenever it appears to the Special Appellate Court or, as the case may
be, the Federal Government, that such transfer will promote the ends of justice or
tend to the general convenience of the parties or witnesses.
187
THE CUSTOMS ACT,1969
185E. Place of sittings.- A Special Judge shall ordinarily hold sittings at his
headquarters but, keeping in view the general convenience of the parties or the
witnesses, he may hold sittings at any other place.
185F. Appeal to Special Appellate Court.- (1) Any person, including the Federal
Government 28[the 28a[Board], the Collector of Customs 28b[or Director of
Intelligence and Investigation] or any other officer authorized in this behalf by the
Board], aggrieved by any order passed or decision made by a Special Judge under
this Act or under the Code of Criminal Procedure,1898(Act V of 1898), may, subject
to the provisions of Chapters XXXI and XXXII of the Code, within 29[sixty days]
from the date of the order or decision, prefer an appeal or revision to the Special
Appellate Court, and in hearing and disposing of such appeal or revision, such Court
shall exercise all the powers of a High Court under the said Code.
185G. Persons who may conduct prosecution etc.- (1) Notwithstanding anything
contained in the Code of Criminal Procedure, 1898(Act V of 1898), a Special
Prosecutor appointed under section 47 of the Prevention of Smuggling Act,1977,
shall be competent to conduct prosecution before a Special Judge for and on behalf
of the Federal Government and to withdraw prosecution when so required by the
Federal Government.
186. Detention of goods pending payment of fine or penalty.- (1) When any
fine or penalty has been imposed, or while imposition of any fine or penalty is under
consideration 31[,or pending any inquiry or investigation], in respect of any goods,
such goods shall not be removed by the owner until such fine or penalty has been
paid 32[or such inquiry and investigation has been completed].
188
THE CUSTOMS ACT,1969
(2) When any fine or penalty has been imposed in respect of any goods,
the appropriate officer may detain any other goods belonging to the same owner
pending payment of such fine or penalty.
187. Burden of proof as to lawful authority etc.- When any person is alleged to
have committed an offence under this Act and any question arises whether he did
any act or was in possession of anything with lawful authority or under a permit,
license or other document prescribed by or under any law for the time being in force,
the burden of proving that he had such authority, permit, license or other document
shall lie on him :
50[Provided that any person, alleged to have committed an offence under this
Act, shall bear the burden of proof that any property owned by him in his name or
someone else name was not acquired from the proceeds of such crime:
Provided further that the procedure for forfeiture of such property shall be
prescribed by the Board under the rules.]
(ii) that the signature and every other part of such document
which purports to be in the handwriting of any particular
person or which the Special Judge may reasonably assume to
have been signed by, or to be in the handwriting of, any
particular person, is in that person’s handwriting, and in the
case of a document executed or attested that it was executed or
attested by the person by whom it purports to have been so
executed or attested;
189
THE CUSTOMS ACT,1969
189. Notice of conviction to be displayed.- (1) Upon the conviction of any person
for the offence of smuggling, the 1[Federal Government] may require him to exhibit
in or outside, or both in and outside his place of business, if any, notices, of such
number, size and lettering, and placed in such positions and containing such
particulars relating to conviction as it may determine, and to keep them so exhibited
continuously for a period not less than three months from the date of conviction; and,
if he fails to comply fully with the requirement, he shall be deemed to have
committed a further offence under this Act of the nature of the original offence for
which he was convicted.
(2) If any person so convicted refuses or fails to comply fully with any
such requirement, any officer authorized in that behalf by an order of the 1[Federal
Government] in writing may, without prejudice to any proceedings which may be
brought in respect of any such refusal or failure, affix the notices in or outside, or
both in and outside, the place of business of such person in accordance with the
requirement of the 1[Federal Government] in pursuance of sub-section (1).
(3) If, in any case, the 1[Federal Government] is satisfied that the
exhibition of notices in accordance with the requirements of the provisions of sub-
section (1) or sub-section (2) will not effectively bring the conviction to the notice of
persons dealing with the convicted person, the 1[Federal Government] may, in lieu
of, or in addition to any such requirement, require the convicted person to exhibit for
such period, not being a period less than three months, on such stationery used in his
business as may be specified in the requirement, a notice placed in such position and
printed in type of such size and form and containing such particulars relating to the
conviction as may be specified in the requirement; and, if he fails to comply fully
with the requirement, he shall be deemed to have committed a further offence under
this Act of the nature of the original offence for which he was convicted.
192. Duty of certain persons to give information.- (1) Any person who comes to
know of the commission of any offence under this Act, or an attempt or likely
attempt to commit any such offence, shall, as soon as may be, give information
thereof in writing to the officer-in-charge of the nearest custom- house or customs-
station, or if there is no such custom-house or customs-station, to the officer-in-
charge of the nearest police-station.
190
THE CUSTOMS ACT,1969
LEGAL REFERENCE
1. Substituted for the words “Central Government” by the Finance Ordinance, 1972 (XXI of
1972), S.3, page 56 and Second Schedule S.1, page 76.
2. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.
4(6), page 476.
2A. By the Finance Act, 2006 the words ”or Deputy Collector” were omitted.
3. Substituted by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(iii), page 24. At the
time of substitution sub-section (4) was as under:-
“(4) The officer of customs or the officer-in-charge of a police station before whom any
person is taken under this section shall, if the offence be bailable, either admit him to bail to
appear before the Magistrate having jurisdiction or have him taken in custody before such
Magistrate.
(5) When any person is taken under sub-section (4) before an officer of customs as
aforesaid, such officer shall proceed to inquire into the charge against such person.
(6) For the purpose of an inquiry under sub-section (5), the officer of customs may
exercise the same powers, and shall be subject to the same provisions, as an officer-in-
charge of a police station may exercise and is subject to under the Code of Criminal
Procedure, 1898 (Act V of 1898), when investigating a cognizable offence:
Provided that, if the officer of customs is of opinion that there is sufficient evidence or
reasonable ground of suspicion against the accused person, he shall, if the offence be
bailable, either admit him to bail to appear before a Magistrate having jurisdiction, or have
him taken in custody before such Magistrate.
(7) If it appears to the officer of customs that there is no sufficient evidence or
reasonable ground of suspicion against the accused person, he shall release the accused
person on his executing a bond, with or without sureties as the officer may direct, to appear,
if and when so required, before the Magistrate having jurisdiction and shall make a full
report of the case to his immediate superior.”.
4. Substituted for the words “nearest Magistrate” by the Federal Laws (R&D) Ordinance, 1981
(XXVII of 1981).
5. Substituted for the word “Magistrate” by the Federal Law (R&D) Ordinance, 1981 (XXVII
of 1981). Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of
1996).,
6. Omitted the word “in connection with the smuggling of any goods” by the Finance Act, 2004
(II of 2004), S.3(16), page 17
7. Omitted the words, figures and brackets “sub-section (3) to (7) of” by the Prevention of
Smuggling Act, 1977 (XII of 1977), S.51(iv), page 226.
8. Substituted for the full stop by the Finance Act, 2004 (II of 2004), S.3(17), page 17.
9. Added by the Finance Act, 2004 (V of 2004), S.3(17), page 17.
10. Substituted by the Finance Ordinance, 1979 (XXX of 1979), S.6(8), page 188. At the time of
substitution section 169 was as under:-
“169. Things seized how dealt with.- (1) All things seized on the ground that they are
liable to confiscation under this Act shall, without unnecessary delay, be delivered into the
care of the officer of customs authorized to receive the same.
(2) If there be no such officer at hand, all such things shall be carried to and deposited
at the customs-house nearest to the place of seizure.
(3) If there be no custom-house within a convenient distance, such things shall be
deposited at the nearest place appointed by the Collector of Customs for the deposit of things
so seized.
191
THE CUSTOMS ACT,1969
10a.[(4) When anything liable to confiscation under this Act is seized by the appropriate
officer under Section 168, the Collector of Customs or any other officer of Customs
authorized by him in this behalf may, notwithstanding the fact that adjudication of the case
under Section 179, or an appeal under section 193, or a revision under Section 196 is
pending, cause the things to be sold in accordance with the provisions of Section 201 and
have the proceeds kept in deposit pending adjudication of the case or, as the case may be,
disposal of the appeal or revision:
Provided that if the things seized is any conveyance, it may be sold as aforesaid only if it has
been sued for smuggling or attempting to smuggle goods notified by the Federal Government
under clause 8 of the Table in Section 156:
Provided further that where the owner or person incharge of the conveyance is to be or is
being prosecuted in a court of law, such conveyance may not be sold without permission of
the court.]
(5) If no such adjudication 10b[or, as the case may be, in such appeal or revision] the things
so sold is found not to have been liable to such confiscation, the entire sale proceeds, after
necessary deduction of duties, taxes or dues as provided in Section 201, shall be handed over
to the owner.”.
10a. Substituted by the Finance Act,1973 (L of 1973), S.9(8)(a), page 13. At the time of
substitution this was as under:-
“(4) If the Collector of Customs or any other officer of customs authorized by
him in this behalf considers that any such things is perishable or liable to rapid
deterioration, he shall immediately cause it to be sold in accordance with the
provisions of Section 201 and have the proceeds kept in deposit pending
adjudication of the case.”.
10b. Inserted the words and commas by the Finance Act, 1973(L of 1973), page 13.
S.9(8)(b), page 13.
11. Substituted by the Finance Ordinance, 2001 (XXV of 2001), S.4(7), page 306. At the time of
substitution this was as under:
“(4) When anything liable to confiscation under this Act is seized by the appropriate
officer under section 168, the Collector of Customs or any other officer of customs
authorized by him in this behalf may, notwithstanding the fact that adjudication of the case
under section 179, or an appeal under section 193, or a revision under section 196 or a
proceeding in any court, is pending, cause the things to be sold in accordance with the
provisions of section 201 and have the proceeds kept in deposit pending adjudication of the
case or as the case may be, disposal of the appeal or revision or the final judgment by the
court.
(5) If on such adjudication or, as the case may be, in such appeal or revision or
proceedings in court, the things so sold is found not to have been liable to such confiscation,
the entire sale proceeds, after necessary deduction of duties, taxes or dues as provided in
section 201, shall be handed over to the owner.”.
13. .The words, commas and figure “the Press and Publications Ordinance, 1960(XV of 1960) in
its application to the province of East Pakistan or in” omitted by the Federal Laws (R&D),
Ordinance, 1981.
14. Inserted by the Finance Act, 2003 (I of 2003), S.5(31), page 40.
14A. Omitted the words “bill of export of” by the Finance Act, 2006
15. Substituted by the Finance Ordinance, 2000 and again substituted by the FO,2002, At the
time of substitution section 179 was as under:-
192
THE CUSTOMS ACT,1969
“179. Power of adjudication.-In cases involving confiscation of goods or
imposition of penalty under this Act, the jurisdiction and powers of the officers of
customs shall be as follows:-
(1) a Collector of Collector of Customs may deal with cases where the value
of the goods exceeds ten thousand rupees;
(2) a 1a[Additional Collector] of Customs may deal with cases where the value of the
goods does not exceed ten thousand rupees;
(3) an 1 b[Assistant Collector or Deputy Collection] of Customs may deal with cases
where the value of the goods does not exceed two thousand five hundred rupees;
(4) any other officer of customs as the Board may authorize by virtue of his office may
deal with cases where the value of the goods does not exceed two hundred and fifty rupees;
(5) any officer of customs shall be competent to impose any penalty under section 156
in any case which he is authorized to deal with:
Provided that the Board may, by notification in the official Gazette, reduce or
extend the jurisdiction and powers of any particular officer or class of officers.”.
1a. Substituted for the words “Deputy Collector” by the Finance Act, 1996
(IX of 1996), S.4(6), page 476.
1b. Substituted for the words “Assistant Collector” by the Finance Act, 1996
(IX of 1996), S.4(7), page 476.
16. Substituted by the Finance Act, 2006. At the time of substitution sub-section (1) and (2) of
section 179 was as under:-
(2) The Board may, by notification in the official Gazette, fix or vary the jurisdiction and powers
of any Officer of Customs or a class of officers.
184. Power to try summarily.- Any Magistrate for the time being empowered to try in
a summary way the offences specified in sub-section (1) of Section 260 of the Code of
Criminal Procedure, 1898 (Act V of 1898) may, if he thinks fit, on application in this behalf
by the prosecution, try an offence under this Act except when the value of goods involved in
such offences exceeds five hundred rupees, in accordance with the provisions of sub-section
(1) of Section 262, 263, 264 and 265 of that Code.”. –
24. Substituted by the Prevention and Smuggling Act, 1977 (XII of 1977), S.51(vii), page 227. At
the time of substitution section 185 was as under:-
“185. Special powers for Magistrates.- Notwithstanding anything contained in the Code
of Criminal Procedure, 1898 (Act V of 1898) and subject to the other provisions of this Act,
any Magistrate of the first class specially empowered by the Provincial Government in this
behalf may pass a sentence of imprisonment for a term exceeding two years and of fine
exceeding one thousand rupees for an offence under this Act.”.
194
THE CUSTOMS ACT,1969
25. Substituted for the words “and Mekran” by the Customs (Amendment) Ordinance, 1977.
26. The words “or the District Magistrate” omitted by the Federal Laws (R&D) Ordinance,
1981(XXVII of 1981).
27. Inserted by the Finance Act, 1973 (51 of 1973), S.9(8), page 13 and substituted by the
Prevention and Smuggling Act, 1977(XII of 1977), S.51(vii), page 227. At the time of
substitution section 185-A was as under:-
“185-A. Offences to be tried by Special Judges.- (1) The Federal Government may, by
notification in the official Gazette, appoint as many Special Judges as it may consider
necessary in this section referred to a Special Judge and where it appoints more than one
Special Judge, shall specify in the notification the territorial limits within which each one of
them shall exercise jurisdiction.
(2) A Special Judge shall be a person who is or has been or is qualified to be a Sessions
Judge.
(3) Notwithstanding anything contained in any other provision of this Act or in any
other law for the time being in force, on the appointment of a Special Judge for any area, an
offence punishable under this Act shall be tried exclusively by the Special Judge and all cases
pending in any other court in such area immediately before such appointment shall stand
transferred to such Special Judge.
(4) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), except
those of Chapter XXXVIII of that Code, shall apply to the proceedings of the court of a
Special Judge and for the purposes of the said provisions, the court of a Special Judge shall
be deemed to be a Court of Session trying cases without the aid of assessors or a jury, and a
person conducting prosecution before the Court of a Special Judge shall be deemed to be a
Public Prosecutor.
(5) For the purposes of sub-section (4), the Code of Criminal Procedure, 1898 (Act V
of 1898) shall have effect as if an offence punishable under this Act were one of the offences
referred to in sub-section (1) of Section 237 of the Code.
(6) A Special Judge shall take cognizance of, and have jurisdiction to try, an offence
triable under sub-section (3) only upon a complaint in writing made by such officer of
Customs, or such other person invested with the powers of an officer of Customs, as may be
authorized by the Central Board of Revenue in this behalf, by a general or special order in
writing.}
1b[(7) The provisions of Chapter XX of the Code of Criminal Procedure, 1898
(Act V of 1898), shall apply to trial of cases under this Act in so far as they under the Code of
Criminal Procedure, 1898 (Act V of 1898), to admit to bail any person accused of any non-
bailable offence punishable under this Act who appears or is brought before such court.
(9) The Federal Government may, by order in writing, direct the transfer, at any stage
of the trial, of any case from the court of one Special Judge to the court of another Special
Judge for disposal, whenever it appears to the Federal Government that such transfer will
promote the ends of justice or tend to the general convenience of parties or witnesses.
(10) In respect of a case transferred to a Special Judge by virtue of sub-section (3) or
under sub-section (9), such Judge shall not, by reason of the said transfer, be bound to recall
and re-hear any witness who has given evidence in the case before the transfer and may act
on the evidence already recorded by or produced before the court which tried the case before
the transfer.]”.
1b. Added by the Finance Act, 1974 (XL of 1974), S..10, page 245.
27a. The words “or by an officer-incharge of a police-station” were omitted by the Finance Act,
2007.
28. Inserted by the Finance Act, 2005.
28a. For the words “Central Board of Revenue” the word “Board” was substituted by the
Finance Act, 2007.
28b. Inserted by the Finance Act, 2007.
29. Substituted the words “thirty days” by the Finance Ordinance, 1982 (XII of 1982), S.6(11),
page 61.
195
THE CUSTOMS ACT,1969
30. Inserted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(9), page 224.
31. Inserted by the Finance Act, 2004 (II of 2004), S.3(18), page 17.
32. Inserted by the Finance Act, 2004 (V of 2004), S.3(18), page 17.
33. Substituted for the word “Magistrate” by the Prevention and Smuggling Act, 1977
34. Substituted for the full stop by the Finance Act, 2004 (II of 29\004), S.3(19),
35. Added by the Finance Act, 2004 (II of 2004), S.3(19), page 17.
36. Substituted for the word “Magistrate” by the Prevention and Smuggling Act, 1977.
37. Added by Finance Act,2008(I of 2008) (Page-46)
38. The words “receipt of the contravention report” and “ninety” substituted with the words
“issuance of show cause notice” and “sixty”, respectively and proviso inserted by Finance
Act,2009.
39. Substituted by Finance Act, 2012 for the words “[(1) Subject to sub-section (2), in cases
involving confiscation of goods or imposition of penalty under this Act or the rules made
thereunder, the jurisdiction and powers of the Officers of Customs in terms of amount of
duties and other taxes involved, excluding the conveyance, shall be as follows:-
46. Substituted by Finance Act,2019. At the time of substitution the words was “Fifty”
47. Substituted by Finance Ac, 2019. At the time of substitution the words was “one hundred and
twenty”
48. Inserted by Finance Act, 2019
49. Inserted by Tax Laws (Amendment) Act (30th March) 2020
50. Inserted by Finance Act, 2020 (June)
51. Added a proviso by Finance Act, 2021.
196
THE CUSTOMS ACT,1969
1
CHAPTER XIX
Provided that an appeal preferred after the expiry of thirty days may be
admitted by the Collector (Appeals) if he is satisfied that the appellant has sufficient
cause for not preferring the appeal within that period.]
(2) An appeal under this section shall be in such form and shall be
verified in such manner as may be prescribed by rules made in this behalf.
(3) An appeal made under this Act shall be accompanied by a fee of one
thousand rupees to be paid in the manner that may be prescribed by the Board.
5a[193A. Procedure in appeal.- (1) The Collector (Appeals) shall give an
opportunity to the appellant to be heard if he so desires.
(2) The Collector (Appeals) may, at the hearing of an appeal, allow the
appellant to go into any ground of appeal not specified in the ground of appeal, if the
Collector (Appeals) is satisfied that the omission of that ground from the grounds of
appeal was not willful or unreasonable.
68
[(2A) The Collector (Appeals) may, for a period not exceeding thirty days,
stay recovery of duty and taxes on filing of appeal and after affording opportunity of
being heard to the officer of the concerned Collectorate or Directorate.]
5b
[(3) The Collector (Appeals) may, after making such further inquiry as
may be necessary pass an order, within 48,70[ninety] days from the date of filing of
appeal or within such extended period as the Collector (Appeals) may for reasons to
be recorded in writing, extend, confirm, modify or annul the decision or order
appealed against:
Provided that such extended period shall not exceed 49{sixty] days unless the
Board further extends at any time during the pendency of appeal:]
50
[Provided further that any period during which the hearing of an appeal is
adjourned on account of a stay order or alternative dispute resolution proceedings or
197
THE CUSTOMS ACT,1969
the time taken through adjournment by the petitioner not exceeding thirty days, shall
be excluded for the purpose of computation of aforesaid period.]
Provided further that, where the Collector (Appeals) is of opinion that any
duty has not been levied or has been short-levied or erroneously refunded, no order
requiring the appellant to pay any duty not levied, short-levied or erroneously
refunded shall be passed unless the appellant is given notice within the time-limit
specified in section 32 to show cause against the proposed order.
(4) The order of the Collector (Appeals) disposing of the appeal shall be
in writing and shall state that points for determination, the decision thereon and the
reasons for the decision.
6,71,76,
[194. Appellate Tribunal.- (1) There shall be established an Appellate
Tribunal to be called the Customs Appellate Tribunal to exercise the powers and
perform the functions conferred on the Customs Appellate Tribunal by this Act.
(2) The Customs Appellate Tribunal shall consist of a chairman and such
other judicial and technical members who shall be appointed in such numbers and in
such manner as the Prime Minister may prescribe by rules, which may be made and
shall take effect notwithstanding anything contained in section 219 or any other law
or rules for the time being in force.
198
THE CUSTOMS ACT,1969
(6) The rules in respect of the matters covered under this section made
prior to commencement of the Tax Laws (Second Amendment), Act, 2020 shall
continue in force unless amended or repealed.]
9[194A. Appeals to the Appellate Tribunal.- (1) Any person 10[or an officer of
Customs] aggrieved by any of the following orders may appeal to the Appellate
Tribunal against such orders:-
11
[(a) Omitted.]
61
[(a) a decision or order passed by an officer of Customs not below the
rank of Additional Collector under section 179.]
12
[ab) an order passed by the Collector (Appeals) under section 193;]
13
[(b) Omitted].
(c) an order passed under section 193, as it stood immediately before the
appointed day;
66
(d) [an order passed under section 195 by the Board or an officer of
Customs not below the rank of an Additional Collector;] 14[***]:
59
(e) [an order passed in revision by the Director-General Customs
Valuation under section 25D, provided that such appeal shall be heard
by a special bench consisting of one technical member and one
judicial member.]
15
[Omitted]
Provided 16[**] that the Appellate Tribunal may, in its discretion, refuse to
admit an appeal in respect of an order referred to in sub-section(1) where-
(i) the value of the goods confiscated without option having been given
to the owner of the goods to pay a fine in lieu of confiscation under
section 181; or
(ii) in any disputed case other than a case where the determination of any
question having a relation to rate of duty of customs or to the value of
goods for purposes of assessment is in issue or is one of the points in
issue, the difference in duty involved or the duty involved; or
199
THE CUSTOMS ACT,1969
(iii) the amount of fine or penalty determined by such order; does not
exceed 17[fifty] thousand rupees.
18
[(2) Where the Board or the Collector of Customs is aggrieved by an order
passed by the Collector (Appeals), it, or as the case may be, he may prefer an appeal
to the Appellate Tribunal. Such appeal shall be preferred by an officer, not below the
rank of Assistant Collector or Assistant Director so authorized in writing by the
Board or the Collector or the Director, as the case may be.]
(3) Every appeal under this section shall be filed within sixty days from
the date on which the decision or order sought to be appealed against is
communicated to the Board or the Collector of Customs, or as the case may be, the
other party preferring the appeal.
(4) On receipt of notice that an appeal has been preferred under this
section, the party against whom the appeal has been preferred may, notwithstanding
that he may not have appealed against such order or any part thereof, file, within
thirty days of the receipt of the notice, a memorandum of cross-objections verified in
such manner as may be specified by rules made in this behalf against any part of the
order appealed against and such memorandum shall be disposed of by the Appellate
Tribunal as if it were an appeal presented within the time specified in sub-section (3).
(5) The Appellate Tribunal may admit an appeal or permit the filing of a
memorandum of cross-objections after the expiry of the relevant period referred to in
sub-section(3) or sub-section (4), if it is satisfied that there was sufficient cause for
not presenting it within that period.
(6) An appeal to the Appellate Tribunal shall be in such form and shall be
verified in such manner as may be specified by the rules made in this behalf and
shall, except in the case of 19[***] a memorandum of cross-objections referred to in
sub-section (4), be accompanied by a fee of 20[one thousand] rupees.
21
[(7) All cases pending, immediately before the commencement of the
Finance Ordinance, with the Collector(Appeals) shall stand transferred to the
Appellate Tribunal for disposal in accordance with law.]
21a
[(8) Notwithstanding anything in this Act where any reference or appeal
was preferred with the approval of Collector of Customs by the officer of lower rank
than that of the Collector and the reference or appeal is pending before an appellate
forum or the Court, such reference or appeal shall be deemed to have been so filed
by the Collector and for removal of doubt it is hereby declared the pending appeals
shall not abate solely on this ground.]
200
THE CUSTOMS ACT,1969
Provided that the appeal shall be decided within sixty days of filing the
appeal or within such extended period as the Tribunal may, for reasons to be
recorded in writing, fix:
77
[Provided further that in cases, wherein the provisions of clause (s) of
section 2 have been invoked, appeals shall be decided within a period of thirty days:]
51
[Provided further that the Appellate Tribunal may stay recovery of the duty
and Sales Tax on filing of appeal which order shall remain operative for thirty days
and during which period a notice shall be issued to the respondent and after hearing
the parties, order may be confirmed or varied as the Tribunal deems fit but stay order
shall in no case remain operative for more than one hundred and eighty days.]
(2) The Appellate Tribunal may, at any time within 21c[one] years from
the date of order, with a view to rectifying any mistake apparent from the record,
amend any order passed by it under-sub-section (1) and shall make such amendments
if the mistake is brought to its notice by the Collector of Customs or the other party
to the appeal:
(3) The Appellate Tribunal shall send a copy of every order passed by it
under this section, disposing of an appeal, to the 24[officer of Customs] and in
valuation cases also to the 68[Director] Valuation, and the other party to the appeal.
25
(4) Save as otherwise expressly provided in [section 196], an order
passed by the Appellate Tribunal in appeal shall be final.
194C. Procedure of Appellate Tribunal.- (1) The powers and functions of the
Appellate Tribunal may be exercised and discharged by Benches constituted by the
Chairman from amongst the members thereof.
(5) If the members of a Bench differ in opinion on any point, the point
shall be decided according to the opinion of the majority, if there is a majority, but if
the members are equally divided, they shall state the point or points on which they
differ and the case shall be referred by the Chairman for hearing on such point or
points by one or more of the other members of the Appellate Tribunal, and such
point or points shall be decided according to the opinion of the majority of the
members of the Appellate Tribunal who have heard the case including those who
first heard it:
202
THE CUSTOMS ACT,1969
Provided that, where the members of a Special Bench are equally divided, the
points on which they differ shall be decided by the Chairman.
(6) Subject to the provisions of this Act, the Appellate Tribunal shall
have power to regulate its own procedure and the procedure of the Benches thereof
in all matters arising out of the exercise of its powers or of the discharge of its
functions, including the places at which the Benches shall hold their sittings.
(7) The Appellate Tribunal shall, for the purposes of discharging its
functions, have the same powers as are vested in a court under the Code of Civil
Procedure, 1908(V of 1908), when trying suit in respect of the following matters,
namely:-
30, 77
[195. Powers of Board or Chief Collector or Collector to pass certain
orders.—(1) The Board or the Chief Collector or the Collector of Customs may,
within his jurisdiction, call for and examine the records of any proceedings under
this Act for the purpose of satisfying itself or, as the case may be, himself as to the
legality or propriety of any decision or order passed by a subordinate officer.]
67
[(1A) Where it is deemed necessary to pass fresh orders, in respect of
proceedings referred to in sub-section (1), the Board or Collector of Customs or
73
[Chief Collector] may pass the order itself or himself, as the case may be, or assign
the case to an officer of higher rank, who may have passed the earlier order, for
passing such order as he may think fit:]
204
THE CUSTOMS ACT,1969
(2) The Board may, subject to the provisions of sub-section (1), after
examination of the application of an aggrieved person, appoint a committee, within
thirty days of receipt of such application, consisting of-
(5) The committee constituted under sub-section (2) shall examine the
issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any
officer of customs or any other person to conduct an audit and shall decide the
dispute by majority, within ninety days of its constitution in respect of the resolution
of dispute as it deems fit.
77
[Omitted]
205
THE CUSTOMS ACT,1969
(7) The decision of the committee under sub-section (5) shall be binding
on the Collector when the aggrieved person, being satisfied with the decision, has
withdrawn the appeal pending before the court of law or any appellate authority and
has communicated the order of withdrawal to the Collector:
(9) The Board shall communicate the order of dissolution to the court of
law or the appellate authority and the Collector and the aggrieved person.
(11) The aggrieved person may make payment of customs duty and other
taxes as determined by the committee under sub-section (5) and all decisions, orders
and judgments made or passed shall stand modified to that extent.
(12) The Board may prescribe the amount to be paid as remuneration for
the services of the members of the committee, other than the member appointed
under clause (a) of sub-section (2).
(13) The Board may, by notification in the official Gazette make rules for
carrying out the purposes of this section, including the procedures and manner of
conducting of ADR committee meetings.]
43
[196. Reference to High Court. – 44[ (1) Within ninety days of the date on which
the aggrieved person or Collector 44a[or Director of Intelligence and Investigation]
62
[ , or Director of Valuation], as the case may be, was served with order of the
Appellate Tribunal under sub-section (3) of section 194B, the aggrieved person or
any officer of Customs not below the rank of an 78[Deputy] Collector 44a[or
78
[Deputy] Director], authorized by the Collector 44a[or Director in writing], may
prefer an application, in the prescribed form along with a statement of the case, to the
High Court, stating any question of law arising out of such order.]
206
THE CUSTOMS ACT,1969
(2) The statement to the High Court, referred to in sub-section (1), shall
set out the facts, the determination of the Appellate Tribunal and the question of law,
which arises out of such order.
(3) Where, on an application made under sub-section (1), the High Court
is satisfied that a question of law arises out of the order, referred to in sub-section
(1), may proceed to hear the cases.
(4) A reference to the High Court under this section shall be heard by a
Bench of not less than two judges of the High Court and, in respect of the reference,
the provisions of section 98 of the Code of Civil Procedure, 1908 (Act V of 1908),
shall apply so far as may be, notwithstanding anything contained in any other law for
the time being in force.
(5) The High Court upon hearing a reference under this section shall
decide the question of law raised by the reference and pass judgment thereon
specifying the grounds on which such judgment is based and the Tribunal’s order
shall stand modified accordingly. The Court shall send a copy of the judgment under
the seal of the Court to the Appellate Tribunal:
76
[Provided that the reference filed under sub-section (1) shall be decided
within six months of filing the application or within such extended period as the
High Court may, for reasons to be recorded in writing, fix.]
(6) Notwithstanding that a reference has been made to the High Court,
the duty shall be payable in accordance with the order of the Appellate Tribunal:
Provided that, the amount of duty is reduced as a result of the judgment in the
reference by 45[such officer as authorized by the Collector or] the High Court, and
any amount of duty is found refundable, the High Court may, on application
submitted by the Collector, within thirty days of the receipt of the judgment of the
High Court, that he wants to prefer petition for leave to appeal to the Supreme
Court, make an order authorizing the Collector to postpone the refund until the
disposal of the appeal by the Supreme Court.
(7) Where recovery of duty has been stayed by the High Court by an
order, such order shall cease to have effect on the expiration of a period of six
months following the day on which it is made unless the reference is decided, or
such order is withdrawn by the High Court earlier.
(8) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an
application made to the High Court under sub-section (1).
207
THE CUSTOMS ACT,1969
45
[(10) Notwithstanding anything in this Act where any reference or appeal
was preferred with the approval of Collector by the officer below the rank of
Collector, and the reference or appeal is pending before appellate forum or the Court,
such reference or appeal shall be deemed to have been preferred and shall be deemed
always to have been so preferred by the Collector.]
46
[196H. Exclusion of time taken for copy.- In computing the period of
limitation specified for an appeal or application under this Chapter, the day on which
the order complained of was served, and if the party preferring the appeal or making
the application was not furnished with a copy of the order when the notice of the
order was served upon him, the time requisite for obtaining a copy of such order,
shall be excluded.
(a) the value of the goods confiscated without option having been given
to the owner of the goods to pay a fine in lieu of confiscation under
section 181; or
208
THE CUSTOMS ACT,1969
(b) in any disputed case, other than a case where the determination of any
question having a relation to the rate of duty of customs or to the
value of goods for purposes of assessment is in issue or is one of the
points in issue, the difference in duty involved or the duty involved;
or
(c) the amount of fine or penalty determined by such order; does not
exceed ten thousand rupees, such proceeding or matter shall continue
to be dealt with by the Federal Government as if the said section 196
had not been substituted:
LEGAL REFERENCE
1. Chapter XIX substituted by the Finance Act, 1989 (V of 1989), S.5(6), page 107. The
previous Chapter contained Sections 193, 194, 195 and 196. At the time of substitution
Chapter XIX was as under:-
“193. Appeal.- Any person aggrieved by any decision or order passed by an officer of
customs under this act may, 1a[within thirty days of the date of receipt of such decision or
order], appeal there from to the Board, or, in such cases as the 1b[Federal Government]
directs, to any officer of customs not lower in rank than a Deputy Collector of Customs, and
the appellate authority may thereupon make such further inquiry as it may consider
necessary, and, after giving him an opportunity of being heard if he so desires, pass such
order as it thinks fit, confirming, altering or annulling the decision or order appealed against:
Provided that no order confiscating goods of greater value, or enhancing any fine in
lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty
not levied or short-levied shall be passed unless the person affected thereby has been given an
opportunity of showing cause against it and of being heard in person or through a counsel or
other person duly authorised by him.
194. Deposit, pending appeal, of duty demanded or penalty levied.- (1) Any person
desirous of appealing under section 193 against any decision or order relating to any duty
demanded in respect of goods which have ceased to be under the control of customs
authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if
209
THE CUSTOMS ACT,1969
he is so permitted by the appellate authority at any later stage before the consideration of the
appeal, deposit with the appropriate officer the duty demanded or levied.
Provided that such person may, instead of depositing an aforesaid the entire amount of the
penalty, deposit only fifty per cent thereof and furnish a guarantee from a scheduled bank for
the due payment of the balance:
Provided further that where, in any particular case, the appellate authority is of the opinion
that the deposit of duty demanded or penalty levied will cause undue hardship to the
appellant, it may dispense with such deposit either unconditionally or subject to such
conditions as it may deem fit to impose.
195. Power of the Board to call for and examine records etc.- 1c(1) The Board or the
Collector of Customs, within his jurisdiction may call for and examine the records of any
proceedings under this Act for the purpose of satisfying itself
196. or, as the case may be, himself as to the legality or propriety of any decision or
order passed therein by a subordinate officer and may pass such order as it to he may think
fit:
Provided that no order confiscating goods of greater value, or enhancing any fine in
lieu of confiscation, or imposing or enhancing any penalty or requiring payment of any duty
not levied or short-levied shall be passed unless the person affected thereby has been given an
opportunity of showing cause against it and of being heard in person or through a counsel or
other person duly authorised by him.]
(2) No record of any proceedings relating to any decision or order passed by an officer
of customs shall be called for and examined under sub-section (1) after the expiry of two
years from the date of such decision or order.
Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of
confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not
levied or short-levied shall be passed unless the person affected thereby has been given an
opportunity of showing cause against it and of being heard in person or through a counsel or
other person duly authorised by him.”
1a. Substituted for the words “within three months of the date of such decision or
order” by the Finance Ordinance, 1972 (XXI of 1972).
1b.. Substituted for the words “Central Government” by the Finance Ordinance, 1972
(XXI of 1972), S.3, page 56 and Second Schedule, S.1, page 76.
1c. Substituted by the Finance Act, 1975 (L of 1975). At the time of substitution was as
under:-
(i) The Board may on its own motion call for an examine the records of any
proceedings under this Act for the purpose of satisfying itself as to the legality or propriety of
any decision or order passed therein by an officer subordinate to it and may pass such orders
as it thinks fit:
Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of
confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not
levied or short levied shall be passed unless the person affected thereby has been given an
210
THE CUSTOMS ACT,1969
opportunity of showing cause against it and of being heard in person or through a counsel or
other person duly authorised by him.
1d. Substituted for the words and figure “by an officer of Customs or the Board, or an
order passed under Section 195 by the Board confiscating goods of greater value or
enhancing any fine in lieu of confiscation or imposing or enhancing any penalty or
requiring payment of any duty not levied or short-levied” by the Finance Act, 1975.
1e. Substituted for the words “within four months of the date of such decision or order”
by the Finance Ordinance,1972 (XXI of 1972)”
2. Section 193 was omitted by the Finance Ordinance, 2000 (XI of 2000) and added by the
Finance Ordinance, 2002 (XXVII of 2002), S.4(10), page 224. At the time of omission
section 193 was as under:-
“2a{193. Appeals to Collector (Appeals).- (1) Any person aggrieved by any decision or
order passed under this Act by an officer of customs lower in rank than a Collector of
Customs 2b[ , other than a notice of demand served under section
202,] may appeal to the Collector (Appeals) within thirty days of the date of the
communication to him of such decision order:
Provided that an appeal filed after the expiry of thirty days may be admitted by the Collector
(Appeals) if he is satisfied that the appellant had sufficient cause for not filing the appeal
within that period.
(2) An appeal under this section shall be such form and shall be verified in such
manner as may be specified by rules made in this behalf.]
2c[ (3) An appeal made under this Act shall be accompanied by a fee of one thousand
rupees to be paid in the manner prescribed.]”
5a. Omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(8), page 202, at the time of
omission section 193-A was as under and added by the Finance Ordinance, 2002 (XXVII of
2002):
“193-A. Procedure in appeal.- (1) The Collector (Appeals) shall give an opportunity
to the appellant to be heared if he so desires.
(2) The Collector (Appeals) may, at the hearing of an appeal, allow the appellant
to go into any ground of appeal not specified in the grounds of appeal, if the Collector
(Appeals) is satisfied that the omission of that ground from the grounds of appeal was not
wilful or unreasonable.
(3) The Collector (Appeals) may, after making such further inquiry as may be
necessary, pass such order as he thinks fit conforming, modifying or annulling the decision or
order appealed against, or may refer the case back to the adjudicating authority with such
211
THE CUSTOMS ACT,1969
direction as he may think fit for a fresh adjudication or decision, as the case may be, after
taking additional evidence, if necessary:
Provided further that, where the Collector (Appeals) is of the opinion that any duty
has not been levied or has been short-levied or erroneously refunded, no order requiring the
appellant to pay any duty not levied, short levied or erroneously refunded shall be passed
unless the appellant is given notice within the time limit specified in section 32 to show cause
against the proposed order.
(4) The order of the Collector (Appeals) disposing of the appeal shall be in
writing and shall state the points for determination, the decision thereon and the reasons for
the decision.
(5) On the disposal of the appeal, the Collector (Appeals) shall communicate the
order passed by him to the appellant, the adjudicating authority and the Collector of
Customs.]
5b. Substituted by the Finance Act, 2007. Before substitution it was as under:-
“(3) The Collector (Appeals) may, after making such further inquiry as may be
necessary, pass such order as he thinks fit, confirming, modifying or annulling the decision or
order appealed against, or may refer the case back to the adjudicating authority with such
direction as he may think fit for a fresh adjudication or decision, as the case may be, after
taking additional evidence, if necessary:
6 Substituted by the Finance Act, 1989 (V of 1989), S.5(6), page 108. At the time of substitution
section 194 was as under:-
“194. Deposit, pending appeal, of duty demanded or penalty levied.- (1) Any
person desirous of appealing under section 193 against any decision or order relating to any
duty demanded in respect of goods which have ceased to be under the control of customs
authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if
he is so permitted by the appellate authority at any later stage before the consideration of the
appeal, deposit with the appropriate officer the duty demanded or the penalty levied:
Provided that such person may, instead of depositing as aforesaid the entire amount of the
penalty, deposit only fifty per cent thereof and furnish a guarantee from a scheduled bank for
the due payment of the balance: Provided further that where, in any,
particular case, the appellate authority is of the opinion that the deposit of duty demanded or
penalty levied will cause undue hardship to the appellant, it may dispense with such deposit,
either unconditionally or subject to such conditions as it may deem fit to impose.
(2) If, upon an appeal it is decided that the whole or any portion of the aforesaid duty
or penalty was not leviable, the appropriate officer shall return to the appellant such amount
or portion as the case may be.
212
THE CUSTOMS ACT,1969
7. Substituted by the Finance Act, 1999 (IV of 1999), S.5(10)(11)(a), page 769. At the time of
substitution sub-section (2) was as under:- “(2) A
judicial member shall be a person who is a Judge of a High Court who has for a period of not
less than five years exercised the powers of a District Judge and is qualified to be a Judge of a
High Court or who is or has been an Advocate of a High Court and is qualified to be a Judge
of High Court.”.
7a. Substituted by the Finance Act, 2007. Before substitution it was as under:-
“(3) A technical member shall be an officer of Customs and Excise Group equivalent in
rank to that of a Member, Central Board of Revenue.”
8. Proviso omitted by the Finance Act, 1999 (IV of 1999), S.5(10(11)(b), page 769. At the time
of omission this proviso was as under:-
“Provided
that where a Judge of High Court is appointed as the Chairman of the Appellate Tribunal his
term and conditions shall be the same as those of a Judge of the High court.”.
12. Inserted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(a)(I), page 226.
13. Omitted by the Finance Ordinance, 2000(XXV of 2000), S.4(9)(a)(iii) at the time of mission
this was a under:-
“(b) an order passed by the Collector (Appeals) under section 193;”.
14. Omitted the comma and words “,as it stood immediately before the appointed day” by the
Finance Act, 1995 (I of 1995), S.6(2)(I), page 511.
15. The first proviso omitted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(a)(ii),
page 226. At the time of omission this proviso was as under:-
“Provided that no appeal shall lie to the Appellate Tribunal, and the Appellate Tribunal shall
not have jurisdiction to decide any appeal, in respect of any order referred to in sub-section
(1) if such order relates to –
(a) any goods imported or exported as baggage;
(b) any goods loaded in a conveyance for importation into Pakistan, but which are not
unloaded at their place of destination in Pakistan; or so much of the quantity of such goods as
has not been unloaded at any such destination if goods unloaded at such destination are short
of the quantity required to be unloaded at that destination;
(c) repayment of customs-duty under clause (c) of section 21;
(d) payment of drawback as provided in Chapter VI, and the rules made thereunder :”
16. The word “further” omitted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(iii),
page 226.
17. Substituted for the word “ten” by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(a)(iv),
page 202.
18. Substituted by the Finance Act, 2007. Before substitution it was as under:-
18a[(2) The Board or the Collector of Customs may, if it or, as the case may be, he is of the
opinion that an order passed by the Collector (Appeals) under section 193 is not legal or
213
THE CUSTOMS ACT,1969
proper, direct the appropriate officer to appeal on its or, as the case may be, his behalf to the
Appellate Tribunal against such order.]
18a. Omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(b), page 203 and
added by the Finance Ordinance, 2002 (XXVII of 2002), S.4(11)(b), page 226. At the time of
omission this sub-section was as under:-
“(2) The Board or the Collector of Customs may, if it or, as the case may be, he is of the
opinion that an order passed by the Collector (Appeals) under section 193 is not legal or
proper, direct the appropriate officer to appeal on its or, as the case may be, his behalf to the
Appellate Tribunal against such order.”.
19. The words brackets and figure “an appeal referred to in sub-section (2) or” omitted by the
Finance Ordinance, 2000 (XXI of 2000), S.
20. Substituted for the word “20a[seven hundred fifty]” by the Finance Ordinance, 2002 (XXVII
of 2002), S.4(11)(c), page 226.
20a. Substituted for the words “two hundred” by the Finance Ordinance, 2001 (XXV of
2001), S.4(8)(b), page 307.
21. Added by the Finance Ordinance, 2000 (XXI of 2000), S.4(9)(d), page 203.
21a. Added by the Finance Act, 2007.
21b. Substituted by the Finance Act, 2007.Before substitution it was as under:-
“(1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of
being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the
decision or order appealed against or may refer the case back to the authority which passed
such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh
adjudication or decision, as the case may be, after taking additional evidence, if necessary
22[:]
23[Provided that the appeal shall be decided within sixty days of filing the appeal or
within such extended period as the Tribunal may, for reasons to be recorded in writing fix,
provided that such extended period shall not in any case exceed ninety days.]”
21c. For the word “three” the word “one” was substituted by the FA,2007.
22. Substituted for full stop by the Finance Ordinance, 2000 (XXI of 2000), S.4(10)(I), page 203.
23. Inserted by the Finance Ordinance, 2000 (XXI of 2000), S.4(10(I), page 203.
24. Substituted for the words “Collector of Customs” by the Finance Ordinance, 2000 (XXI of
2000), S.4(10)(ii), page 203.
25. Substituted for the words and figures “section 196 and 19G” by the Finance Act, 1997.
25a For the words “ relating, among other things, to the determination of any question having a
relation to the rate of duty of customs or to the value of goods for purposes of assessment,”
the words “deciding a case involving duty, tax, penalty or fine exceeding five million rupees”
were substituted by the Finance Act, 2007.
26. Substituted for the full stop by the Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001).
27. Added by Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001).
28. Inserted by the Tax Laws (Amendment) Ordinance, 2001 (XIII of 2001).
28a. Following explanation was omitted by the FA, 2007:-
“Explanation:- For the purposes of this sub-section, the expression “cases” means the
matters involving decisions other than decisions in relation to a question of law under this
Act or the Central Excises Act, 1944 (I of 1944) or as the case may be, the Sales Tax Act,
1990.]”
28b. Omitted by the FA, 2007.At the time of omission it was as under :-
(b)in any disputed case, other than a case where the determination of any question
having a relation to the rate of duty of customs or to the value of goods for purposes of
assessment is in issue or is one of the points in issue, the difference in duty involved or the
duty involved; or”
28c. Substituted by the FA, 2007.At the time of substitution it was as under :-
214
THE CUSTOMS ACT,1969
“(c) the amount of fine or penalty involved does not exceed 29&29a[fifteen hundred
thousand rupees].”
29. Substituted for the words “one hundred thousand rupees” by the Finance Act, 2003 (I of
2003), S.5(33), page 40.
29a. Substituted for the word “five” by the Finance Act, 2006.
30. Substituted by the Finance Act, 1995 (I of 1995), S.6(3), page 511. At the time of substitution
section 195 was as under:-
“195. Powers of Board or Collector of Customs to pass certain orders.- (1) The Board
may, of its own motion, call for and examine the record of any proceeding in which a
Collector of Customs as an adjudicating authority has passed any decision or order under this
Act for the purpose of satisfying itself as to the legality or propriety of any such decision or
order and may, by order, direct the Collector to apply to the Appellate Tribunal for the
determination of such points arising out of the decision or order as may be specified by the
Board in its orders.
(2) The Collector of Customs, may, of his own motion, call for and examine the record
of any proceeding in which an adjudicating authority subordinate to him has passed any
decision or order under this Act for the purpose of satisfying himself as to the legality or
propriety of any such decision or order and may, by order, direct such authority to apply to
the Collector (Appeals) for the determination of such points arising out of the decision or
order as may be specified by the Collector of Customs in his order.
(3) No order shall be made under sub-section (1) or sub-section (2) after the expiry of
one year from the date of the decision or order.
(4) Where in pursuance of an order under sub-section (1) or sub-section (2) the
Collector of Customs or any officer of Customs authorised in his behalf by him makes an
application to the Appellate Tribunal or the Collector (Appeals) within a period of thirty days
from the date of communication of the order under sub-section (1) or sub-section (2), such
application shall be heard by the Appellate Tribunal or the Collector (Appeals), as the case
may be, as if such application were an appeal made against the decision or order of the
adjudicating authority and the provisions of the Act regarding appeals including the
provisions of sub-section (4) of section 196 shall, so far as may be, apply to such application.
(5) The Board, or the Collector of Customs within his jurisdiction, may call
for and examine the record of any decision or order where the decision or order is of the
nature referred to in the first proviso to sub-section (1) of section 194A for the purpose of
satisfying itself or, as the case may be, himself as to the legality or propriety of the decision
or order passed therein by a subordinate officer and may pass such order as it or he may think
fit:
Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of
confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not
levied or short levied or reducing the amount of repayment of customs duty or drawback shall
be passed unless the person affected thereby has been given an opportunity of showing cause
against it and of being heard in person or through a counsel or other person duly authorised
by him:
Provided further that no record of any proceedings relating to any decision or order passed by
an officer of customs shall be called for and examined after the expiry of two years from the
date of such decision or order.”.
31. Omitted the words “of Customs” by the Finance Act, 2003 (I of 2003), S.5(34)(I), page 41.
32. Inserted by the Finance Act, 2003 (I of 2003), S.5(34)(ii), page 41.
32A. Omitted the words “or the Collector of Customs (Adjudication)” by the Finance Act, 2006.
215
THE CUSTOMS ACT,1969
33. Omitted by the Finance Act, 2000 (XXI of 2000), S.4(11), page 203. At the time of omission
section 195-A was as under:-
(2) An application under sub-section (1) shall be made within thirty days from the date
of the communication to the applicant of the order against which the application is being
made:
Provided that the Federal Government may permit the filing of application after the expiry of
relevant period referred to in sub-section (2) if it is satisfied that there was sufficient cause for
not presenting it within that period.
(3) An application under sub-section (1) shall be in such form and shall be verified in
such manner as may be specified by rules made in this behalf and shall be accompanied by a
fee of two hundred rupees.
(4) The Federal Government may, of its own motion, annual or modify any order
referred to in sub-section (1).
(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating goods
of greater value shall be passed under this section --
(a) in any case in which an order passed under section 193 has enhanced any penalty or
fine in lieu of confiscation or has confiscated goods of greater value; and (b) in any other
case, unless the person affected by the proposed order has been given notice to show cause
against it within one year from the date of the order sought to be annulled or modified.
(6) Where the Federal Government is of the opinion that any duty of customs has not
been levied or has been short levied or has been erroneously refunded, no order levying or
enhancing the duty shall be made under this section unless the person affected by the
proposed order is given notice to show cause against it within the time limit specified in
section 32.]”
33a. Substituted for section 196 by the Finance Act, 1989.
34. Substituted by the Finance Ordinance, 2002 (XXVII of 2002), S.4(12), page 227. At the time
of substitution this proviso was as under:-,
“Provided that, where in any particular case the Appellate Tribunal is of opinion that the
deposit of duty demanded or penalty levied would cause undue hardship to such person. the
Appellate Tribunal may dispense with such deposit subject to such conditions as it may
deem fit to impose so as to safeguard the interests of revenue:
35. Added by the Tax Law (Amendment) Ordinance, 1999.
36. Inserted by the Finance Act, 2004 (II of 2004), S.3(20), page 17
36a. By the Finance Act, 2006 the word “Alternate” were substituted .
36b. Substituted by the Finance Act, 2007. Before substitution it was as under:-
“(1) Notwithstanding any other provision of this Act, or the rules made there under, any
aggrieved person in connection with any matter of Customs pertaining to liability of customs
duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of
goods, relaxation of any time period or procedural and technical condition may apply to the
Central Board of Revenue for the appointment of a committee for the resolution of any
hardship or dispute mentioned in detail in the application 36c[:]
36c[Provided that only those disputes which are under litigation, in any court of law or an
appellate authority, shall be entertained for dispute resolution under the provisions of this
section.]
216
THE CUSTOMS ACT,1969
(2) The Central Board of Revenue, after examination of the application of an aggrieved
person, shall appoint a committee consisting of an officer of customs and two persons from a
notified panel of 37[retired District and Sessions Judge and retired Judges of High Court or]
Chartered or Cost Accountants, Advocates Tax Consultants or reputable taxpayers for the
resolution of the hardship or dispute.”
36c. Substituted/Added by the Finance Act, 2006
37. Inserted by the Finance Act, 2006.
38. Inserted by the Finance Act, 2006.
38a. For the words “forty-five”, the word “sixty” was substituted by the FA,2007.
39. Substituted for the full stop by the Finance Act, 2006.
40. Added by the Finance Act, 2006.
41. Inserted by the Finance Act, 2006.
42. Omitted by Finance Act, 2005.
43. Substituted “Sections 196 to 196G” by the Finance Act, 1997 (XXII of 1997), S.5, page 1219.
At the time of substitution these sections were as under:-
“196. Statement of case to High Court.- (1) The Collector of Customs, or the other
party may, within thirty days of the date upon which he is served with notice of an order
under section 194-B (not being an order relating among other things, to the determination of
any question having a relation to the rate of duty of customs or to the value of goods for
purposes of assessment), by application in such form as may be specified by rules made in
this behalf, accompanied, where the application is made by the other party, by a fee of two
hundred rupees, require the Appellate Tribunal to refer to the High Court any question of law
arising out of such order and subject to the other provisions contained in this section, the
Appellate Tribunal shall, within one hundred and twenty days of the receipt of such
application, draw up a statement of the case and refer it to the High Court:
Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by
sufficient cause from presenting the application within the period herein before specified,
allow it to be presented, within a further period not exceeding thirty days.
(2) On receipt of notice that an application has been made under sub-section (1), the
person against whom such application has been made, may, notwithstanding that he may not
have filed such an application, file, within forty-five days of the receipt of the notice, a
memorandum of cross-objectives verified in such a manner as may be specified by rules
made in this behalf against any part of the order in relation to which an application for
reference has been made and such memorandum shall be disposed of by the Appellate
Tribunal as if it were an application presented within the time specified in sub-section (1).
(3) If, on an application made under sub-section (1), the Appellate Tribunal refuses to
state the case on the ground that no question of law arises, the Collector of Customs, or, as
the case may be, the other party may, within one hundred twenty days from the date on which
he is served with notice of such refusal, apply to the High Court and the High Court may, if it
is not satisfied with the correctness of the decision of the Appellate Tribunal, require the
Appellate Tribunal to state the case and to refer it, and on receipt of any such requisition, the
Appellate Tribunal shall state the case and refer it accordingly.
(4) Where in the exercise of the powers under sub-section (3), the Appellate Tribunal
refuses to state a case which it was required by an applicant to state, the applicant may,
within thirty days from the date on which he receives notice of such refusal, withdraw his
application and, if he does so, the fee, if any, paid by him shall be refunded.
196-A. Statement of case to Supreme Court in certain cases.- If, on an application made
under section 196, the Appellate Tribunal is of the opinion that, on account of conflict in the
decision of High Court in respect of any particular question of law, it is expedient that a
reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a
statement of the case and refer it through the Chairman direct to the Supreme Court.
217
THE CUSTOMS ACT,1969
196-B. Power of High Court or Supreme Court to require statement to be amended.-
If the High court or the Supreme Court is not satisfied that the statement in a case referred to
it is sufficient to enable it to determine the questions raised thereby, the court may refer the
case back to the Appellate Tribunal for the purpose of making such additions thereto or
alterations thereto or alterations therein as it may direct in this behalf.
196-C. Case before High Court to be heard by not less than two Judges.- (1) When any
case has been referred to the High Court under Section 196, it shall be heard by a Bench of
not less than two Judges of the High Court and shall be decided in accordance with the
opinion of such Judges or of the majority, if any, of such Judges. (2) Where there
is no such majority, the Judges shall state the point of law upon which they differ and the
case shall then be heard upon that point only by one or more of the other Judges of the High
Court designated by the Chief Justice, and such point shall be decided according to the
opinion of the majority of the Judges who have heard the case including those who first heard
it.
196-D. Decision of High Court or Supreme Court on the case stated.- (1) The High
Court or the Supreme Court hearing any such case shall decide the question of law raised
therein, and shall deliver its judgment thereon containing the grounds on which such decision
is founded and a copy of the judgment shall be sent under the seal of the Court and the
signature of the Registrar to the Appellate Tribunal which shall pass such orders as are
necessary to dispose of the case in conformity with such judgment.
(2) The costs of any
reference to the High Court or the Supreme Court, which shall not include the fee for making
the reference, shall be in the discretion of the Court.
196-E. Appeal to Supreme Court.- An appeal shall lie to the Supreme Court from –
(a) any judgment of the High Court delivered on a reference made under section 196 in
any case which, on its own motion or on an oral application made by or on behalf of the party
aggrieved, immediately after the passing of the judgment, the High Court certifies to be a a fit
one for appeal to the Supreme Court, or
(b) any order passed by the Appellate Tribunal relating, among other things, to the
determination of any question having a relation to the rate of duty of customs or to the value
of goods for purposes of assessment.
196-F. Hearing before Supreme Court.- (1) The provisions of the Code of Civil
Procedure, 1908 (V of 1908), relating to appeals to the Supreme Court shall, so far as may be,
apply in the case of appeals under section 196 as they apply in the case of appeals from
decrees of a High Court:
Provided that nothing in this sub-section shall be deemed to affect the provisions of
sub-section (1) of section 196 or section 196G.
(2) The cost of the appeal shall be in the discretion of the Supreme Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect
shall be given to the order of the Supreme Court in the manner provided in section
196 in the case of a judgment of the High Court.
196-G. Sums due to be paid notwithstanding reference etc.- Notwithstanding that a
reference has been made to the High Court or the Supreme Court or an appeal has been
preferred to the Supreme Court, sums due to the Government as a result of an order passed
under sub-section (1) of section 194-B shall be payable in accordance with the order so
passed.”.
44. Substituted sub-section(1)of section 196 by the Finance Act, 2006 At the time of substitution
the sub-section (1) was as under:-.
“(1) Within ninety days of the communication of order of the Appellate Tribunal under sub-
section (3) of section 194B, the aggrieved person or the Collector may prefer an application,
in the prescribed form along with a statement of the case, to the High Court, stating any
question of law arising out of such order.”
44a. Inserted by the Finance Act, 2007.
45. Inserted by the Finance Act, 2006.
46. Added by the Finance Act, 1989
218
THE CUSTOMS ACT,1969
47. Substituted and inserted by the Finance Act,2008(I of 2008) (Page-46).
48. The word “ninety” substituted with the word “one hundred and twenty” by FINANCE
ACT,2009.
49. The words “ninety” substituted with the word ”Sixty” by Finance Act,2009.
50. Inserted by Finance Act,2009.
51. This proviso “Provided further that such extended period shall in no case exceed ninety
days.] “ substituted by Finance Act,2009.
52. The proviso “Provided further that any Bench referred to in clause (a) shall not hear the
matters involving question of law.” Omitted by Finance Act,2009.
53. The word “ten” substituted with the word “five” by Finance Act,2009.
54. The word “sixty” substituted with word “ninety” by Finance Act,2009.
55. The colon substituted with the words full stop and proviso “Provided that the period of
38a[sixty] days stipulated for making the recommendations may be extended by the Board for
another 38a[sixty] days on specific request of the committee”, omitted by Finance Act,2009.
56. Inserted by Finance Act,2009.
57. Inserted by Finance Act,2009.
58. The words “Excise and Sales Tax”, omitted by Finance Act,2010.
59. Added by Finance Act,2010.
60. Substituted for the words “(1) Any person 3 [other than] an officer of customs aggrieved by
any decision or order passed under 4[sections 79, 80 and 179 of this Act by an officer of
5[*****] may prefer appeal to the
customs not below the rank of an Assistant Collector]
Collector (Appeals) within thirty days of the date of communication to him of such decision
or order:
Provided that an appeal preferred after the expiry of thirty days may be admitted by the
Collector (Appeals) if he is satisfied that the appellant had sufficient cause for not preferring
the appeal within that period.” by Finance Act, 2012
61. Inserted by Finance Act, 2012.
62. Inserted by Finance Act, 2013.
63. Substituted for the words “Customs and Excise Group” by Finance Act, 2014.
64. Substituted for the word “five” by Finance Act, 2014.
65. Added vide Finance Act, 2016.
66. Inserted by Finance Act, 2017, At the time of substitution the position was :
"an order passed by the Board or the Collector of Customs under section 195"
67. Inserted by Finance Act, 2017.
68 Inserted by Finance Act, 2018.
69. Inserted by Finance Act, 2019.
70. Substituted by Finance Act, 2019. At the time of substitution the words was “one hundred
and twenty”
71. Substituted by Finance Act 2019. At the time of substitution the section was:
[194. Appellate Tribunal.- (1) The Federal Government shall constitute an Appellate Tribunal to be
called the Customs 58[Omitted] Appellate Tribunal consisting of as many judicial and technical members as it
thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.
7
[(2) A judicial member shall be a person who has been a Judge of the High Court, or is or has been
a District Judge and is qualified to be a Judge of High Court, or is or has been an advocate of a High Court
and is qualified to be a Judge of a High Court.]
7a
[(3) A technical member shall be an officer of 63[Pakistan Customs Service] equivalent in rank to
that of a Member of the Board or Chief Collector of Customs or Director General or a senior Collector with
64
[three] years experience in that position.]
(4) The Federal Government shall appoint one of the members of the Appellate Tribunal to be the
Chairman thereof.
(5) The terms and conditions of appointment of the Chairman and judicial and technical members
shall be such as the Federal Government may determine.
219
THE CUSTOMS ACT,1969
8
[* * * * * * * ].
[195C. 36a[Alternative] Dispute Resolution.- 36b[(1) Notwithstanding anything in this Act, or the rules made
there under, any aggrieved person, in connection with any dispute pertaining to liability of customs-duty,
admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any
time period or procedural and technical condition which is under litigation in any Court of law or an Appellate
Authority, except in the cases where first information reports (FIRs) have been lodged or criminal proceedings
have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the
Board is involved, may apply to the Board for the appointment of a Committee for the resolution of dispute in
appeal.
(2) Subject to the provision of sub-section (1), the Board, after examination of the application of an
aggrieved person, may appoint a committee, within thirty days of receipt of such application, consisting of an
officer of customs [not below the rank of Collector]
and two persons from a notified panel of retired District and Sessions judge and retired judges of High Court or
Chartered or Cost Accountants, Advocates, Tax consultants or reputable taxpayers for the resolution of the
hardship or dispute.]
(3) The committee constituted under sub-section (2) shall examine the issue and may, if it deems
necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an
audit and make recommendations 38[, within 38a, 54[ninety] days of its constitution,] in respect of the resolution of
dispute as it may deem fit 39, 55[.]
40, 55
[Omitted]
56
[(3A) If the Committee constituted under sub-section (2) fails to make recommendations within a
stipulated period of ninety days, the Board may dissolve the committee and constitute a new committee which
shall decide he matter within a further period of ninety days, and after expiry of that period, if the dispute is not
resolved, the matter shall be taken up the by the appropriate forum for decision.]
(4) The Board may, on the recommendation of the committee, pass such order, as it may deem
appropriate 57[,within 65[ninety] days of the receipt of recommendations of the committee] 65[;
Provided that if such order is not passed within the aforesaid period, recommendations of the committee
shall be treated to be an order passed by the Board under this sub-section.]
47
[4A Notwithstanding anything contained in sub-section (4), the Chairman and a member
nominated by him may, on the application of an aggrieved person, for reasons to be recorded in writing and on
being satisfied that there is an error in the order or decision, pass such order as may be deemed just and
equitable.]
(5) The aggrieved person may make the payment of customs duty and other taxes as determined
41
[if any] by the Board in its order under sub-section (4) 65[or as per recommendations of the committee in terms
of proviso to sub-section (4), as the case may be,] and all decisions, orders and judgments made or passed shall
stand modified to that extent and all proceedings under this Act or the rules made thereunder by any authority
shall abate:
Provided that, in case the matter is already sub-judice before any authority, or tribunal or the court, an
agreement made between the aggrieved person and the Board in the light of recommendations of the committee
shall be submitted before that authority, tribunal or the court for consideration and order as deemed appropriate.
42
[(6) Omitted.
(7) The Board may, by notification in the official Gazette, make rules for carrying out the
purposes of this section.]
220
THE CUSTOMS ACT,1969
1
[CHAPTER XIX-A
SETTLEMENT OF CASES
2
[196K Omitted.
196L Omitted.
196M Omitted.
196N Omitted.
196O Omitted.
196P Omitted.
196Q Omitted.
196R Omitted.
196S Omitted.
196T Omitted.
196U Omitted.]
LEGAL REFERENCE
1. Inserted by the Finance Act, 1996 (IX of 1996), S.4(5), page 471.
2. Omitted by the Finance Ordinance, 2000 (XXI of 2000), S.4(13), page 204. At the time of
omission section 196-K to 196-U were as under:
“Chapter XIX-A
SETTLEMENT CASES
196K. Indirect Taxes Settlement Commission.- (1) The Federal Government shall
appoint an Indirect Taxes Settlement Commission to exercise the powers and discharge the
functions conferred on it under this Chapter.
221
THE CUSTOMS ACT,1969
(2) The Commission shall consist of a Chairman and as many members as
may be necessary, and shall function within the Division of the Federal Government dealing
with revenue.
(3) The members of the Commission shall be appointed by the Federal
Government from amongst persons of integrity and outstanding ability having special
knowledge of, and experience in, matters relating to customs, central excise and sales tax
laws and procedures, and having not less than twenty-two years of service in the customs,
central excise or sales tax departments:
Provided that the Federal Government may also appoint suitable number of
associate member, not exceeding one associate member for each bench of the Commission,
from amongst persons of integrity and outstanding ability having not less than twenty years
experience as chartered accountants, cost accountants, industrial engineers, or advocates of
High Court or Supreme Court. –
(4) The terms, conditions and tenure of service of associate members shall be
determined by the Federal Government.
(5) The Federal Government shall appoint the senior most member of the
Commission to be the Chairman thereof.
196L. Definitions.- In this Chapter, unless the context otherwise requires:-
(i) “associate member” means an associate member appointed under proviso to sub-
section (3) of section 196-K;
(ii) “case” means any proceedings initiated under section 193, 194-A or 195-A and
pending with any authority, court or tribunal on the date of making the application under sub-
section (1) of section 196-N:
Provided that the proceedings relating to smuggling of narcotics or narcotic and
psychotropic substances shall not be proceedings within the meaning of this clause:
Provided further that where an appeal or application for revision has been filed
after the period of limitation and which has not been admitted, such appeal or application for
revision shall not be deemed to be a proceeding pending within the meaning of this clause;
(iii) “Chairman” means the Chairman of the Commission;
(iv) “Commission” means the Indirect Taxes Settlement Commission appointed under
section 196-K; and
(v) “member” means a member of the Commission and includes the Chairman thereof.
196M. Powers and functions of the Commission.-(1) The powers and functions of the
Commission may be exercised and discharged by benches constituted by the Chairman from
amongst the members and associate members.
(2) A bench shall, ordinarily, consist of two members and an associate
member and shall be prescribed over by the Chairman:
Provided that where the applicant makes an application under section 196-N, in writing, for
decision of his case without the associate member, the bench shall be so consumed:
Provided further that, where the Chairman is not a member of the bench, the Chairman may
authorise any member to discharge his functions on the bench.
(2) No act or proceeding of the Commission shall be invalid merely on the ground
of existence of any vacancy of an associate member on the bench.
(4) Subject to the provisions of this Act, the Commission shall have the
power to regulate its own procedure; and the procedure of benches in all matters arising out
of the discharge of its functions, including the places at which the benches shall hold their
sittings.
(5) If the members of a bench differ in opinion as to the decision to be given
on any issue,-
(a) the issue shall be decided according to the opinion of the majority, if there is a
majority;
(b) if the members are equally divided and the Chairman of the Commission is not
himself a member of the bench, the case shall be referred to the Chairman and the
decision of the Commission shall be expressed in terms of the opinion of the
Chairman; and
222
THE CUSTOMS ACT,1969
(c) if the members are equally divided and the Chairman of the Commission is himself
a member of the bench, the opinion of the Chairman shall prevail, and the decision
of the Commission shall be expressed in terms of opinion of the Chairman.
(6) In addition to the powers conferred on the Commission under this
Chapter, it shall have all the powers which are vested in an officer of customs for the proper
discharge of its functions under this Chapter.
196N. Application for settlement of cases.- (1) Any person aggrieved by any order or
decision may, at any stage of his case, make an application in such form and in such manner
as may be prescribed, containing full and true disclosure of his circumstances and the facts
which he may not have disclosed earlier, the manner in which he evaded or avoided payment
of duty, the additional amount of duty payable in this regard and such other particular as may
be prescribed, to the Commission to have the case settled, and any such application shall be
disposed of in the manner provided hereinafter:
Provided that no such application shall be made unless the total amount of duty
payable exceeds one hundred thousand rupees.
(2) Every application made under sub-section (1) shall be accompanied by
such fee as may be prescribed by the Commission.
(3) An applicant, once having made an application under sub-section (1), shall not be
entitled to withdraw it.
Provided that an application shall not be rejected under this sub-section unless an opportunity
of being heard is provided to the applicant.
(3) Where an application is allowed to be proceeded with under sub-section (1), the
Commission may call for the relevant records from the Collector of Customs, and after
examination of such records, if the Commission is of the opinion that any further inquiry in
the matter is necessary, it may direct the Collector to make or cause to be made such further
enquiry and furnish a report on the matters within such time as it may fix.
(4) After examination of the records and report of the Collector received under sub-
section (1) or sub section (3), and after giving an opportunity to the applicant and to the
Collector to be heard, in person or through their authorized representatives, and after
examining such further evidence as may be placed before it or obtained, the Commission
may, in accordance with the provisions of this Act and the rules made thereunder, pass such
order as it thinks fit on the matters stated in the application and reported to it by the Collector
under sub-section (1) or sub-section (3).
(5) Every order passed under sub-section (4), shall provide for the terms of settlement,
including any demand of duty, regulatory duty, additional duty, surcharge, penalty, fine in
lieu of confiscation or prosecution proceedings and the manner in which any sum due under
the settlement shall be paid, and all the matters to make the settlement effective and shall also
223
THE CUSTOMS ACT,1969
provide that the settlement shall be void if it is subsequently found by the Commission that it
has been obtained by fraud or misrepresentation.
(6) Where a settlement becomes void, the proceedings with respect to the matters
relating to the settlement shall be revived from the stage at which the application was
allowed, except the maters pending in appeal or revision before making an application under
sub-section (1) of section 196-N, and the concerned officer of customs may, notwithstanding
anything contained in any other provision of this Act and the rules made thereunder,
complete such proceedings.
(7) The Commission may, if it is of the opinion that any person who made an
application under section 196-N does not cooperate with the Commission in the proceedings
before it, send the case back to the Officer with whom such case was pending at the time
application under that section was made, who shall thereupon dispose of the case in
accordance with the provisions of this Act and the rules made thereunder, as if no application
under section 196-N had been made.
196P. Recovery of sums due under an order of settlement.- Any sum specified in an
order of settlement passed under sub-section (4) of section 196-O shall, subject to such
conditions as may be specified therein, be recovered, and any additional duty or penalty for
default in making payment of such sum, may be imposed and recovered in accordance with
the provisions of this Act and the rules made thereunder by the officer of customs having
jurisdiction in the case.
196S. Power of the Commission to re-open proceedings.- If the Commission is, for
reasons to be recorded in writing, of the opinion that for the proper disposal of the case
pending before it, it is essential to re-open any proceedings connected with the case but which
have been completed under this Act by any officer of customs before the application under
section 196-N was made, it may, with the concurrence of the applicant, re-open such
proceedings and pass such order thereon as it thinks fit, as if the case in relation to which the
application for settlement had been made by the applicant under that section covered such
proceedings as well:
224
THE CUSTOMS ACT,1969
196U. Communications of orders.- The Commission shall communicate its order to the
applicant, the Collector, the adjudicating officer and the officer incharge of the Agency which
detected the evasion or seized the goods.”.
225
THE CUSTOMS ACT,1969
CHAPTER XX
MISCELLANEOUS
197. Customs control over conveyances and goods.- The appropriate officer
shall, for the purposes of this Act, have control over all conveyances and goods in a
customs-area.
198. Power to open packages and examine, weigh or measure goods.- The
appropriate officer may open any package or container and examine, weigh or
measure any goods brought to the customs-station for importation or exportation and
may for that purpose unload any such goods from the conveyance on which they
have been imported or are to be exported 1[:]
2
[Provided that the Collector may, for reasons to be recorded in writing, defer
the examination of goods or class of goods belonging to a particular importer or class
of importers, exporters or class of exporters and cause it to be performed at a
designated place he deems fit and proper.]
199. Power to take samples of goods.- (1) The appropriate officer may, on the
entry or clearance of any goods or at any time while such goods are being passed
through the customs-area, take samples of such goods in the presence of the owner
thereof or his agent 3[or where the Customs Computerized System is operational in
the presence of the custodian of the goods], for examination or testing or for
ascertaining value thereof or for any other necessary purpose.
(2) After the purpose for which a sample was taken is carried out, such
sample shall, if practicable, be restored to the owner, but if the owner fails to take
delivery of the sample within one month of the date on which he is asked in writing
to take its delivery, it may be disposed of in such manner as the Collector of Customs
may direct.
(3) In the case of goods which consist of drugs or articles intended for
consumption as food, and in respect of which the taking of samples for the purposes
of this sub-section may have been authorised by a general or special order of the
Provincial Government, the appropriate officer may also in like circumstances take
samples thereof for submission to, and examination by, such officer of Government
or of a local authority as may be specified in such order.
200. Owner to make all arrangements and bear all expenses.- Any opening,
un-packing, 3[weighing], measuring, repacking, bulking, sorting, letting, marking,
numbering, loading, unloading, carrying, or lading of goods or their containers for
the purposes of, or incidental to, the examination by an officer of customs, removal
226
THE CUSTOMS ACT,1969
or warehousing thereof shall be done, and any facilities or assistance required for any
such examination shall be provided, by or at the expense of the owner of goods 5[:]
6
[Provided that at customs-stations with the operational Customs
Computerized System all the above functions shall be performed by the custodian of
the cargo and the importer 48[or exporter] shall bear all expenses.]
201. Procedure for sale of goods and application of sale proceeds.- (1) Where
any goods, other than confiscated goods, are to be sold under any provision of this
Act, they shall be sold after due notice to the owner 7[or his agent or custodian of
the goods] by public auction or by tender or by private offer or, with the consent of
the owner 7[or his agent or custodian of the goods] in writing, in any other manner.
41
[(1A) The goods may be sold under sub-section (1) through electronic
means, as prescribed by the Board under the rules.]
(2) The sale proceeds shall be applied to the following purposes in their
respective order, namely:-
(c) then to pay the customs-duty, other taxes and dues payable to
the 8[Federal Government] in respect of such goods;
(d) then to pay the charges due to the person holding such goods
in custody.
(3) The balance, if any, shall be paid to the owner of the goods, provided
he applies for it within six months of the sale of the goods or shows sufficient cause
for not doing so 52[:
Provided that, in case wherein goods declaration has been filed, the share of
importer in sale proceeds shall not exceed the declared value of the goods.]
9
[202. Recovery of Government dues.- (1) When, under this Act or under any
other law for the time being in force, which provides for any tax, duty or other levy
being collected in the same manner as customs-duties are collected, a penalty is
adjudged against, or notice or demand is served upon, any person calling for the
payment of any amount unpaid which may be payable by way of penalty or by way
of duty, tax or other levy or under any bond 10[,guarantee] or other instrument
227
THE CUSTOMS ACT,1969
executed under this Act or such other law or the rules made there under, the
appropriate officer-
(a) may deduct or require any other officer of Customs, 49[or Inland
Revenue] to deduct such amount from any money owing to such
person which may be under the control of the Customs, 49[or Inland
Revenue] authorities; or
(2) If the amount cannot be recovered from such person in the manner
provided in sub-section (1), the appropriate officer may serve upon the defaulter a
notice in the prescribed form requiring him to pay the amount specified in the notice
within such time as may be so specified.
(3) If the amount referred to in the notice under sub-section (2) is not paid
within the time specified therein or within the further time, if any, allowed by the
appropriate officer, the appropriate officer may proceed to recover from the defaulter
the said amount by one or more the following modes, namely:-
(a) may recover such amount by attachment and sale of any movable and
immovable property of the guarantor, person, company, bank or
financial institution, where a guarantor or any other person, company,
bank or financial institution fails to make payment under such
guarantee, bond or instrument 12[; or]
228
THE CUSTOMS ACT,1969
13
[(d) arrest of the defaulter and his detention in the prison for a period not
exceeding fifteen days:
Provided that this mode shall not be applied unless the period of limitation
prescribed for filing appeal has expired, or an appeal is pending.]
14
[(3A) A warrant of arrest issued against a defaulter in sub-section (3)(d)
shall not be executed if the arrears due from him are paid or the defaulter furnished
security to the satisfaction of appropriate officer.
(3B) Any defaulter who under sub-section (3) is being kept under detention
shall forthwith be set at liberty on the arrears due from him being paid.]
(4) For the purposes of recovery of duty, or other levy under 15[sub-
sections(1) and (3)], the appropriate officer shall have the same powers which, under
the Code of Civil Procedure, 1908 (Act V of 1908), a civil court has for the purpose
of the recovery of an amount due under a decree.
(5) The Board may make rules regulating the procedure for recovery of
duty, tax or other levy under this section and any other matter connected with or
incidental to the operation of this section 14a[:]
14a
[Provided that if any arrears which may be payable by way of duty,
surcharge, fee, service charges, fine or penalty or any other amount which is
adjudged or payable under any bond, guarantee or other instrument executed under
this Act or the rules made thereunder, cannot be recovered, the Board or any officer
not below the rank of Collector authorized by the Board, may for reasons to be
recorded, write off the arrears in the manner as may be prescribed by rules.]
16
[202A. Levy of surcharge.- Notwithstanding anything contained in this Act and
without prejudice to any other action that may be taken thereunder, if any person
fails to pay the arrears within the prescribed time, he shall, in addition to the arrears,
be liable to pay surcharge at the rate of 40[KIBOR plus three per cent per annum], of
the total amount of arrears.
Explanation.- For the purpose of calculating surcharge, the period of default shall be
reckoned from the day following the due date on which the arrears were required to
be paid to the day preceding the date on which the same are actually paid.]
53
[202B. Reward to officers and officials of Customs and Law Enforcement
Agencies.—(1) In cases involving evasion of customs-duty and other taxes and
confiscation of goods, cash reward shall be sanctioned to the officers of Customs
Service of Pakistan, as defined under the Occupational Groups and Services
(Probation, Training and Seniority) Rules, 1990 and officials including officers and
229
THE CUSTOMS ACT,1969
officials of other law enforcement agencies, who assist Customs officers and
officials or are actually instrumental in seizure of smuggled goods and vehiclesas
confirmed by the respective Collectorate of Customs, for their meritorious conduct in
such cases, and to the informer providing credible information leading to such
confiscation or detection, as may be prescribed by rules by the Board, only after
realization of part or whole of the duty and taxes involved in such cases.]
(2). The Board may, by a notification in the official Gazette, prescribe the
procedure in this behalf and specify the apportionment of reward sanctioned under
this section for individual performance or to collective welfare of the personnel of
45
[Customs Service of Pakistan, as defined under the Occupational Groups and
Services (Probation, Training and Seniority) Rules, 1990.]
203. Wharfage or storage fees.- The Collector of Customs may from time to
time fix the period after the expiration of which goods left in any custom-house,
custom area, wharf or other authorised landing place or part of the custom-house
premises, shall be subject to payment of fees, and the amount of such fees 50[as
provided under the rules prescribed by the Board].
16a
[203A. Power to authorize expenditure.- The Board may authorize and
prescribe the manner in which fee and service charges collected including by
ventures of public-private partnership under section 18D are expended. ]
205. Amendment of documents.- Except in the case provided for by sections 29,
45, 53 and 88, an officer of customs not below the rank of an 18/18A[Assistant
Collector] of Customs may, in his discretion, upon payment of a fee of 19[one
hundred] rupees, authorise any document , after it has been presented at the custom-
house to be amended.
or departure of any conveyance 21b[or any customs clearance related activity] or the
import or export of goods or baggage at any customs-station unless such person
holds a license granted in this behalf in accordance with the rules 22[as a customs
agent 47[or a shipping agent].
23
[208. Person to produce authority if required.- (1) When any person licensed
under section 207 applies to any officer of Customs for permission to transact any
specified business with him on behalf of any principal, such officer may require the
applicant to produce a written authority from the principal on whose behalf such
business is to be transacted, and in default of the production of such authority refuse
such permission.
(2) Where this Act requires anything to be done by the principal and if any such
thing is done, by an employee or representative expressly authorized by the principal
under sub-section (2) of section 208, unless the contrary is proved, shall be deemed
to have been done with the knowledge and consent of such principal so that in any
proceedings under this Act, the principal shall be liable as if the thing had been done
by himself.
to do under this Act may, with the express or implied consent of the person-in-charge
and the approval of the appropriate officer, be done by his agent.
(2) The records required under sub-section (1) shall be kept for a period not
less than 25a[five] years in such form as the Board may by notification in the official
gazette, specify.
(3) The provision of sub-section (1) shall not be applicable to the baggage
of the passengers and crew of the conveyance and to the recipients of gifts.]
26
[211A. Access to the premises and records by the officers of Customs.- The
appropriate officer may, at any time after giving a notice in writing, visit any
business or manufacturing premises where any raw materials, components,
assemblies or sub-assemblies etc., imported at a notified reduced rate of the duties
and taxes are manufactured, processed or stored, and inspect the goods, stocks,
documents or records, data etc., and also take stock of the goods imported,
manufactured, processed or stored, and the quantity thereof.]
47
[212A.- Authorized economic operator programme.- (1) The Federal
Government may, by notification in the official Gazette, devise authorized economic
operator programme to provide facilitations relating to secure supply chains of
imported and exported goods through simplified procedures with regard to
regulatory controls applicable thereon.
232
THE CUSTOMS ACT,1969
(2) The question on which advance ruling is sought shall be in respect of,
-
(i) classification of goods under the first schedule to this Act;
(ii) determination of origin of the goods under the rules of origin notified
for bilateral and multilateral agreements;
(iii) applicability of notifications issued in respect of duties under this Act
or any tax or duty chargeable under any of the law for the time being
in force in the same manner as duty of customs leviable under this
Act; or
(iv) any other matter as the Board may specify by notification in the
official Gazette.
(4) The Ruling issued under sub-section (1) shall be binding on the
applicant.
(5) The Ruling issued under sub-section (1) shall be binding on the
Customs for a period of 54[three years] unless there is a change in law or facts or
circumstances on the basis of which the advance ruling was pronounced.
233
THE CUSTOMS ACT,1969
(6) The appeal against the Ruling issued under sub-section (1) shall lie
with the Member Customs (Policy) within thirty days of issuance of Ruling:
Provided that during the appeal period of thirty days, the operation of
Ruling shall remain suspended unless the applicant accepts the Ruling.]
215. Service of order, decision, etc.- Any order or decision passed or any
summons or notice issued under this Act shall be served-
234
THE CUSTOMS ACT,1969
while they remain or are lawfully detained in any custom-house, customs area,
wharf or landing place under the charge of any officer of custom, unless it be proved
that such loss or damage was occasioned by gross negligence or willful act of such
officer.
217. Protection of action taken under the Act.- 31[(1) No suit, prosecution or
other legal proceeding shall lie against the 8[Federal Government] or any public
servant for anything which is done or intended to be done in good faith in pursuance
of this Act or the rules 32[and notwithstanding anything in any other law for the time
being in force no investigation or enquiry shall be undertaken or initiated by any
governmental agency against any officer or official for anything done in his official
capacity under this Act, rules, instructions or directions made or issued thereunder
without the prior approval of the 31a[Board] ].
33
[(2) No suit shall be brought in any civil court to set aside or modify any
order passed, any assessment made, any tax levied, any penalty imposed or
collection of any tax made under this Act.]
219. Power to make rules.- (1) The Board may, by notification in the official
Gazette, make rules for carrying out the purposes of this Act 36[, including for
charging of fees for processing the customs documents and preparation of copies
thereof].
235
THE CUSTOMS ACT,1969
(4) All rules under this section shall, as soon as may be, be laid at the
table of the National Assembly.
(5) All such rules for the time being in force shall be collected, arranged,
and published at intervals not exceeding two years and shall be sold to the public at a
reasonable price.
46[219A. Power to enter into mutual legal assistance agreements on
customs matters.- (1) The Board may, of its own motion or upon request from an
international organization, a foreign customs administration or any other foreign
competent authority, enter into memorandum of understanding pertaining to mutual
legal assistance in customs matters or in pursuance of any bilateral or a multilateral
agreement, undertake activities, which, inter alia, include-
(2) Notwithstanding anything contained in any other law, for the time
being in force, the Board may, on behalf of the Federal Government, request an
international organization, a foreign customs administration or any other foreign
competent authority for legal assistance on any matter or offence under this Act or
upon request received therefrom.
(3) The Board may, by notification in the official Gazette, prescribe the
rules for any of the matters enumerated in this section.]
38
[220. Omitted.
236
THE CUSTOMS ACT,1969
shall, without prejudice to anything already done or any action already taken, be
deemed to have been done or taken under this Act:
Provided that nothing in this Act shall be so construed as to have the effect of
enhancing the punishment of an offence committed before the commencement of this
Act:
Provided further that where the period of limitation for the submission of an
application or the filing of an appeal or revision prescribed under any of the repealed
enactments had expired or had begun to run before the commencement of this Act
the provisions of those enactments shall continue to apply to such limitation.
(3) Nothing in this Act shall affect any law for the time being in force
relating to the constitution and powers of the trustees of any port or other port
authority.
46[221-A. Validation.-47[(1)] All notifications and orders issued and notified in
exercise of the powers conferred upon the Federal Government, before the
commencement of Finance Act, 2017 shall be deemed to have been validly issued
and notified in exercise of those powers.]
47
[(2) Notwithstanding any order or judgment of any court, a High Court
and the Supreme Court, the regulatory duty already levied, collected and realized in
exercise of any powers under this Act, before the commencement of the Finance Act,
2018 and after the commencement of the Finance Act, 2017, shall be deemed to have
been validly levied, collected and realized under this Act, in exercise of the powers
conferred on the commencement of the Finance Act, 2018, and where any such
regulatory duty has not been levied, collected or realized, the same shall be
recoverable in accordance with the provisions of this Act.]
237
THE CUSTOMS ACT,1969
39
[223. Officers of Customs to follow Board’s orders, etc.- All officers of customs
and other persons employed in the execution of this Act shall observe and follow the
orders, instructions and directions of the Board:
224. Extension of time limit.- The Federal Government, the Board or the
appropriate officer of customs, may, upon being approached by an aggrieved party if
satisfied that the delay was beyond the control of the applicant and that by granting
such extension there is a possibility of some loss or hardship to the applicant being
mitigated or prevented, 44[condone the delay and extend the time limit laid down in
this Act or the rules made thereunder]
LEGAL REFERENCE
“202. Recovery of Government dues.- (1) When, under this Act, a penalty is adjudged
against any person or notice or demand is served upon any person calling for the payment of
any amount unpaid which may be payable by way of duty or under any bond or other
instrument executed under this Act or the rules, the appropriate officer-
(a) may deduct or require any other officer of customs to deduct such amount from any
money owing to such person which may be under the control of the customs
authorities; or
(b) if it cannot be so recovered, may recover or may require any other officer of
customs to recover such amount by detaining and selling any goods belonging to
such person which are under the control of the customs authorities.
(2) If the amount cannot be recovered from such person in the manner
provided in sub-section (1), the appropriate officer may send to the Collector of the District
in which such person resides or owns any property or carries on his business a certificate
signed by him and specifying the amount recoverable from such person: and such Collector
shall on receiving such certificate proceed to recover the amount specified in the certificate as
a public demand or an arrear of land revenue.”.
10 Inserted by the Finance Act, 1994 (XII of 1994), S.6(4)(a), page 254.
10a. Added by the Finance Act, 2007.
11. Substituted by the Finance Act, 1994 (XII of 1994), S.6(4)(b), page 254. At the time of
substitution this was as under:-
“(b) appointment of a receiver for the management of the movable or immovable
property of the defaulter.”.
238
THE CUSTOMS ACT,1969
12. Substituted for the full stop by the Finance Act, 1999 ((IV of 1999), S.10(12)(I), page 769.
13. Added by the Finance Act, 1999 (IV of 1999), S.10(12)(I), page 769.
14. Inserted by the Finance Act, 1999 (IV of 1999), S.10(12)(ii), page 769.
14a. Added by the Finance Act, 2007.
15. Substituted for the word, brackets and figure “sub-section (3)” by the Finance Act, 1994 (XII
of 1994), S.6(4)(c), page 254.
16. Added new section 202A by the Finance Act, 2006.
16a. Inserted by the Finance Act, 2007.
17. Substituted for the word “ten” by the Finance Ordinance, 2002 (XXVII of 2002), S.4(14),
page 227.
18. Substituted for the words “Assistant Collector” by the Finance Act, 1996 (IX of 1996), S.
18A. By the Finance Act, 2006 the words ”or Deputy Collector” were omitted.
19. Substituted for the word “five” by the Finance Ordinance, 2002 (XXVII of 2002), S.4(15),
page 227.
20 Substituted for the words “as an agent” by the Finance Act, 2003 (I of 2003), S.5(36)(a),
page 41.
21. Inserted the words” or issuance of bill of lading” by Finance Act, 2005.
21a Omitted the words” or issuance of bill of lading” by Finance Act, 2007.
21b. Inserted by the Finance Act, 2007.
22. Added by the Finance Act, 2003 (I of 2003), S.5(36)(b), page 41.
23. Substituted by the Finance Act, 2003 (I of 2003), S.5(37), paged 41. At the time of
substitution section 208 was as under:-
“208. Agent to produce authority if required.- (1) When any person applies to any
officers of customs for permission to transact any specified business with him on behalf of
any other person, such officer may require the applicant to produce a written authority from
the person on whose behalf such business is to be transacted, and in default of the production
of such authority refuse such permission.
(2) the clerk, servant or agent of any person or mercantile firm may transact business
generally at the custom-house on behalf of such person or firm:
Provided that the appropriate officer may refuse to recognize such clerk, servant or agent
unless such person or a member of such firm identifies such clerk, servant or agent to the
appropriate officer as empowered to transact such business and deposits with the said officer
an authority in writing duly signed, authorizing such clerk, servant or agent to transact such
business on behalf of such person or firm:
Provided further that the Central Board of Revenue may, by an order, published in the official
Gazette, prohibit transaction with customs of any specified business through a clerk, servant
or agent.”.
24. Substituted by the Finance Act, 2003 (I of 2003), S.5(38), page 42. At the time of substitution
section 209 was as under:-
“209. Liability of principal and agent.- (1) Subject to the provisions of sections 207 and
208, anything which the owner of any goods is required or empowered to do under this Act
may be done by any person expressly or impliedly authorized by the owner for the purpose.
(2) Where this Act requires anything to be done by the owner, importer or exporter of
any goods, any such thing done by an agent, clerk or servant of the owner, importer or
exporter of any goods shall, unless the contrary is proved, be deemed to have been done with
the knowledge and consent of such owner, importer or exporter so that in any proceedings
under this Act the owner, importer or exporter of the goods shall also be liable as if the thing
had been done by himself.
(3) When any person is expressly or impliedly authorised by the owner, importer or
exporter of any goods to be his agent in respect of such goods for all or any of the purposes
239
THE CUSTOMS ACT,1969
of this Act, such person shall, without prejudice to the liability of the owner, importer or
exporter, be deemed to be the owner, importer or exporter of such goods for such purposes:
Provided that where any duty is not levied or is short-levied or erroneously refunded or
account of any reason other than willful act, negligence or default of the agent, such duty
shall not be recovered from the agent.”.
25. Substituted by the Finance Act, 2006. At the time of substitution section 211 was as under:-
“211. Principals and agents to maintain records.- All principals and agents transacting
business under this Act, except those importing or exporting goods for bonafide private or
personal purposes, shall, for a period of not less than [three years] maintain records in such
form as the Board may, by notification in the official Gazette, specify.”
25a. For the word “three” the word “five” was substituted by the Finance Act, 2007.
26.. Inserted section 211A by the Finance Act, 2006.
27. Inserted by the Finance Act, 2005.
28. The word “acknowledgement due” omitted by the Finance Ordinance, 1982
29. Substituted for the full stop by the Finance Act, 2003 (I of 2003), S.5(40)(a),
30. Added by the Finance Act, 2003 (I of 2003), S.5(40)(b), page 43.
31. Re-numbered as sub-section (1) by the Finance Act, 1992 (VII of 1992), S.6(6), page 114 and
substituted by the Finance Act, 2003 (I of 2003).
“(1) No suit, prosecution or other legal proceeding shall lie against the 5[Federal
Government] or any public servant for anything which is done or intended to be done in
good faith in pursuance of this Act or the Rules.”.
31a. For the word “Central Board of Revenue” the word “Board” was substituted by the Finance
Act, 2007.
32. Inserted by the Finance Act, 2003 (I of 2003), S.5(41), page 43.
33. Added by the Finance Act, 1992 (VII of 1992), S.6(6), page 114.
34. Substituted for the “full stop” by the Prevention of Smuggling Act, 1977.
35. Added by the Prevention of Smuggling Act, 1977 (XII of 1977), S.51(viii), page 229.
36. Added by the Finance Act, 1994 (XII of 1994), S.6(5), page 254.
37. Substituted for the words “First Schedule” by the Finance Act, 1975 (L of 1975),
38. Omitted by the Federal Laws (R&D) Ordinance, 1981. At the time of omission section 220
was as under:-
“220. Repeals and amendments.- The enactment specified in the 38a[Fourth Schedule]
are repealed or amended to the extent specified respectively in columns 3 and 4 thereof.”.
38a. Substituted for the words “second Schedule” by the Finance Act, 1975.
39.. Added by the Finance Act, 1975 (L of 1975),S.7(7), page 10.
40. The words “one and a half per cent per month” substituted with the words KIBO plus three
per cent per annum” by Finance Act,2009.
41. Inserted by Finance Act, 2012.
42. Inserted by Finance Act, 2012
43. Substituted for the word “(1) All importers, exporters and claimants of duty drawback,
refunds or any notified concessions, terminal operators, owners of the warehouses, customs
agents and the licensed customs bonded carriers, carrying out business under this Act or any
other law, directly or indirectly, relating to international trade, shall be required to maintain
and keep records and correspondence concerning import and export transactions” by the
Finance Act, 2012.
44. Substituted for the word “extend the time limit laid down in any section” by the Finance Act,
2012.
45. Substituted for the words “Pakistan Customs Service” by Finance Act, 2013.
46. Inserted by Finance Act, 2017
47. Inserted by Finance Act, 2018.
240
THE CUSTOMS ACT,1969
48. Inserted by Finance Act, 2019.
49. Substituted by Finance Act, 2019. At the time of substitution the words was “Central Excise
and Sales Tax” .
50. Inserted by Finance Act, 2019.
51. Omitted the Finance Act, 2019. At the time of omission the words was ”with approval of
Federal Government”
52. Inserted/substituted by Finance Act, 2020 (June)
53. Substituted by Finance Act,2021. At the time of substitution the marginal note and sub-
section (1) of section 202B was as under:
42[202B. Reward to Customs officers and officials.- (1) In cases involving evasion of
customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to
the officers of 45[Customs Service of Pakistan, as defined under the Occupational Groups and
Services (Probation, Training and Seniority) Rules, 1990] and officials, for their meritorious
conduct in such cases, and to the informer providing credible information leading to such
confiscation or detection, as prescribed by rules by the Board, only after realization of part or
whole of the duty and taxes involved in such cases.
54. Substituted by Finance Act, 2021. At the time of substitution the words were “one year”.
241
THE CUSTOMS ACT,1969
6. The extent to which and the conditions subject to which drawback may be
allowed on the imported material used in the manufacture of goods in
Pakistan which are exported.
242
THE CUSTOMS ACT,1969
11. Matters pertaining to the manufacturing and other operators carried on in the
warehouse.
14. Transport of goods from one part of Pakistan to another foreign territory;
conditions as to the due arrival of such goods at the destination.
243
THE CUSTOMS ACT,1969
19. Prevention of the taking out of Pakistan of any coastal goods the export of
which is dutiable or prohibited under this Act or any other law; prevention of
the substitution of imported goods or export goods by coastal goods on board
a vessel; prohibiting the conveyance of any specified class of goods
generally; or to or between specified ports in a coasting vessel.
21. Licensing of agents; the form of the license and fee payable therefore; the
authority competent to grant the license; the period of validity of the license;
qualifications of the licensee; conditions and restrictions applying to the
license including furnishing of security; circumstances in which license may
be suspended or revoked; appeals against the suspension or revocation of the
license.
22. Matters pertaining to any business for the regulation of which a notification
may be issued under section 212; the accounts and records to be maintained ,
and the information to be furnished, by persons engaged in such business.
2
[22A. Registration, and regulating the conduct, of the customs-practitioners
appearing before any officer of customs, the Central Board of Revenue or the
Federal Government in connection with any proceedings under this Act or the
rules made thereunder.]
3
[22B. The form in which the memorandum of appeals shall be made under Chapter
XIX, the manner in which appeals shall be verified and matters relating to
hearing of appeals, revisions and references under the said Chapter which are
not provided for or not sufficiently provided for in the Act.]
5
[22C. Matters pertaining to Authorized Economic Operator (AEO) programme,
including criteria for granting status of AEO to an applicant, suspension and
revocation of the AEO status; and the extent of benefits under AEO
programme.]
23. Any other matter necessary for giving effect to the provisions of this Act.
LEGAL REFERENCES
1. Substituted the words” Bill of Export” by the Finance Act, 2006.
2. Inserted by Finance Act, 1977 (XXX of 1977), S.9(3), page 301.
3. Added by Finance Act, 1989 (V of 1989), S.5, Part-III, page 174.
4. Omitted by Finance Act, 2012.
5. Inserted by Finance Act, 2018
244
THE CUSTOMS ACT,1969
1[THE FOURTH SCHEDULE]
(See section 219)
LEGAL REFERENCES
1. Omitted by the Federal Laws (Revision & Declaration) Ordinance, 1981 (XXVII of 1981), S.3 and
Second Schedule w.e.f. 8th July, 1981.
2. Inserted by Finance Act, 2014
245
THE CUSTOMS ACT,1969
246